Airlines headed for $84bn net loss in 2020: IATA

This picture taken on June 9, 2020 shows an Israir Airlines ATR 72-500 turboprop aircraft landing at Cyprus' Larnaca International Airport. (AFP)
Short Url
Updated 09 June 2020

Airlines headed for $84bn net loss in 2020: IATA

  • “The losses this year will be the biggest in aviation history," IATA director said

PARIS: International airlines are in line to make a combined net loss of more than $84 billion this year in the wake of the coronavirus crisis which has decimated air travel, the International Air Transport Association said Tuesday.
“After $84 billion net losses this year we forecast supplementary losses of $15 billion in 2021,” the IATA said at a new conference, revealing the extent to which its 290 member carriers have been affected by the virus and the ensuing global lockdown designed to limit its spread.
“The losses this year will be the biggest in aviation history, over $84 billion in 2020 and nearly $16 billion in 2021,” said IATA director general Alexandre de Juniac.
“By comparison, airlines lost $31 billion with the Global Financial Crisis and oil price spike in 2008 and 2009. There is no comparison for the dimension of this crisis.”
De Juniac said IATA research “shows that people will return to flying as soon as borders open” and carriers had to be prepared for an orderly resumption once demand returns in line with health guidelines.
“The outlook is challenging to say the least. But aviation is a resilient industry,” De Juniac added. “With a globally harmonized and mutually recognized approach to the re-start measures, we can rebuild the confidence of travelers and kick-start the recovery in aviation and more broadly.
He added the sector hoped that a range of safety measures including more effective mass testing would “give governments the confidence to re-open borders without quarantine measures” as “if quarantine is introduced economies are effectively kept in lockdown for the purposes of travel.”
But De Juniac warned of a growing debt burden as despite government relief measures that had grown by $120 billion to $550 billion — equivalent to some 92 percent of expected 2021 revenues.
The IATA warned in April that airlines faced an “apocalypse” without state aid and forecast that revenues would fall by some 55 percent amid the sharpest falloff in passenger demand since the 9/11 attacks in the United States in 2001.
De Juniac said he hopes to see a more orderly resumption of service than on that occasion “when everybody essentially did their own thing and we have spent 20 years sorting out the differences.”

50% of workers fear losing job in next 12 months: Global economic survey

Updated 25 min ago

50% of workers fear losing job in next 12 months: Global economic survey

  • Saudi adults more optimistic of developing new skills for future jobs
  • 195m jobs lost worldwide amid COVID-19 pandemic: Egyptian minister

DUBAI: More than half the global workforce fears being made redundant in the next 12 months, according to a World Economic Forum-Ipsos survey.

The study, released on the eve of the World Economic Forum’s (WEF) Jobs Reset Summit, questioned 12,000 adults in 27 countries about employment prospects during the ongoing coronavirus disease (COVID-19) pandemic.

And although at least 50 percent were concerned about losing their jobs over the coming year, two-thirds of workers worldwide said they could learn the skills needed for the jobs of the future through their current employer.

In Saudi Arabia, less than 20 percent of those who took part in the survey were very concerned about their jobs disappearing, compared to 39 percent in Spain.

While the findings painted an overall gloomy picture of the global job situation amid the COVID-19 outbreak, they also highlighted green shoots of optimism, particularly in the Kingdom.

Around 18 percent of Saudi workers were not at all worried about losing their jobs, more than the global average of 17 percent.

On learning, Saudis were even more enthusiastic, with 39 percent confident of gaining the necessary skills to compete for the new job opportunities of the future.

During a WEF discussion on the impact of the global health crisis on employment, Rania Al-Mashat, the Egyptian minister for international cooperation, described the COVID-19 pandemic as a mix of many crises that had rendered 195 million people jobless around the world.

But she said that Egypt’s young population offered great opportunities for the country and the government had already rolled out plans to tap into youth development before the virus outbreak.

“The Egyptian government has taken comprehensive measures to reshape the education system incorporating a significant technology element to the sector and this turned out to be very useful for home schooling during the lockdown,” the minister added during a session titled, “Building a New Economy and Society.”

Al-Mashat pointed out that Egypt was adopting the principles of stakeholder capitalism, and in order to utilize the energies of its youth had been actively creating entrepreneurial space and building a strong digital infrastructure. She said there had been many policy movements, especially in the creation of gender equality accelerators.

Alan Jope, the CEO of Unilever and a speaker in the same session, said COVID-19 was not the only current world crisis, adding that economic, health, geopolitical, trade wars, climate change, capital wars, and a few looming military conflicts could be added to a global list of crises.

He also noted that gross domestic product (GDP) should not be considered the only economic measure. “Our measures for success need to change, we’ll have to look at social and environmental parameters, and not just the GDP.”

Jope predicted plenty of future jobs but not in traditional areas of work. “Most of the jobs will be created in the low-carbon sector, along with the IT and biotech industries,” he said.