Nigeria to suffer 3.5 traffic loss, 91, 380 job cut, $0.76 revenue-IATA
- S/Africa tops continent’s losses
The International Air Transport Association (IATA) strengthened its call for urgent action from governments in Africa and the Middle East to provide financial relief to airlines.
IATA stated this In its latest scenario for potential revenue loss by carriers in Africa and the Middle East which it said has reached $23 billion ($19 billion in the Middle East and $4 billion in Africa).
This it noted translates into a drop of industry revenues of 32 per cent for Africa and 39 per cent for the Middle East for 2020 as compared to 2019.
On a country to country impact analysis, the clearing house for over 290 global airlines said the COVID-19 pandemic will see Nigeria’s air traffic figure decline by 3.5 million, resulting in a $ 0.76 billion revenue loss, risking 91,380 jobs and $0.65 billion in contribution to Nigeria’s economy.
This is a higher projection figure compared to the one released two weeks ago where it forecast that COVID-19 could result in 853,000 loss in passenger volumes and $170 million loss in base revenues in Nigeria.
South Africa with the biggest air transport market is going to be the biggest hit with 10.7 million fewer passengers resulting in a $2.29 billion revenue loss, risking 186,850 jobs and $3.8 billion in contribution to South Africa’s economy.
According to IATA, Kenya is expected to see 2.5 million fewer passengers resulting in a $ 0.54 billion revenue loss, risking 137,965 jobs and $1.1 billion in contribution to Kenya’s economy.
Ethiopia on the other hand is projected to 1.6 million fewer passengers resulting in a $0.3billion revenue loss, risking 327,062 jobs and $1.2 billion in contribution to Ethiopia’s economy.
In a teleconference by the Regional Vice President, Africa & Middle East, International Air Transport Association (IATA), Muhammad Albakri, the group called on governments in Africa and Middle East to help minimize the broad damage that these losses would have across the African and Middle East economies.
He said it is vital that governments step up their efforts to aid the industry to provide relief from the effect of COVID-19.
He lauded some that already taken direct action to support aviation including the United Arab Emirates and Qatar, but added that help is needed.
His words, “We are also starting to see several governments in the region providing some financial and tax reliefs, including deferral of aircraft lease payments by the government of Cabo Verde, extension of VAT refund payment dates in Saudi Arabia and positive considerations for financial relief from governments across the region including Jordan, Rwanda, Angola and the UAE”.
“The air transport industry is an economic engine, supporting up to 8.6 million jobs across Africa and the Middle East and $186 billion in GDP. Every job created in the aviation industry supports another 24 jobs in the wider economy”.
“Governments must recognize the vital importance of the air transport industry, and that support is urgently needed. Airlines are fighting for survival in every corner of the world. Travel restrictions and evaporating demand mean that, aside from cargo, there is almost no passenger business.
‘Failure by |Governments to act now will make this crisis longer and more painful. Airlines have demonstrated their value in economic and social development in Africa and the Middle East and governments need to prioritize them in rescue packages.
“Healthy airlines will be essential to jump-start the Middle East and global economies post-crisis,” said Muhammad Al Bakri, IATA’s Regional Vice President for Africa and the Middle East”.
Al Bakri lauded some aviation regulators like Ghana, Morocco, South Africa, Saudi Arabia and for agreeing a full-season waiver to the slot use rule.
This, he noted would enable airlines and airports greater flexibility for this season and greater certainty for summer.
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