The International Air Transport Association (IATA) has announced it is appealing to governments in Africa and the Middle East, urging them to provide emergency support to airlines, the company said.
The airlines are currently fighting for survival due to the evaporation of air travel demand as a result of the COVID-19 crisis.
Extensive cost cutting measures are being implemented by the region´s carriers to mitigate the financial impact of COVID-19. However, due to flight bans as well as international and regional travel restrictions, airlines´ revenues are plummeting–outstripping the scope of even the most drastic cost containment measures. With average cash reserves of approximately two months in the region, airlines are facing a liquidity and existential crisis. Support measures are urgently needed. On a global basis, IATA estimates that emergency aid of up to USD 200 billion is required.
IATA is proposing a number of options for governments to consider.
IATA represents some 290 airlines comprising 82% of global air traffic.