The International Air Transport Association (IATA) has released updated analysis showing a USD 314 billion drop in passenger revenues in 2020 due to the COVID-19 crisis, the company said.
The drop in revenue is a 55% decline compared to 2019
On 24 March IATA estimated USD 252 billion in lost revenues (-44% vs. 2019) in a scenario with severe travel restrictions lasting three months.
IATA proposes a number of relief options for governments to consider, including:
-Direct financial support to passenger and cargo carriers to compensate for reduced revenues and liquidity attributable to travel restrictions imposed as a result of COVID-19;
-Loans, loan guarantees and support for the corporate bond market by governments or central banks. The corporate bond market is a vital source of finance for airlines, but the eligibility of corporate bonds for central bank support needs to be extended and guaranteed by governments to provide access for a wider range of companies.
-Tax relief: Rebates on payroll taxes paid to date in 2020 and/or an extension of payment terms for the rest of 2020, along with a temporary waiver of ticket taxes and other government-imposed levies.
IATA (International Air Transport Association) represents some 290 airlines comprising 82% of global air traffic.