IATA
Passenger demand is expected to fall by 55% compared t with last year in European region. Credit: Robert Lee.

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The International Air Transport Association (IATA) has called on governments to act on measures to preserve European air services.

Some of the government actions suggested by IATA include direct financial support, loans and tax relief to European carriers.

IATA Europe regional vice-president Rafael Schvartzman said: “The world will rely on airlines and air connectivity to restore the global economy. A successful restart of the industry will be crucial.”

This year, the European carriers’ potential revenue loss has increased to $89bn from the previous estimates of $76bn released on 24 March, according to IATA.

Analysis by IATA has also revealed that 2020 passenger demand is expected to fall by 55% down from previous year levels.

The current 90% collapse in air traffic is projected to risk nearly 6.7 million jobs and result in negative GDP impact of $452bn across Europe.

Schvartzman added: “Every job created in the aviation industry supports another 24 jobs in the wider economy. Unfortunately, that means that when aviation jobs disappear, the impact is magnified across the economy.

“Our latest impact assessment shows that the number of jobs at risk has increased to 6.7 million across Europe. As airlines face an unprecedented liquidity crisis, we desperately need European government financial and regulatory support.”

Earlier this month, IATA revealed that approximately 25 million jobs are at risk in aviation and associated sectors due to a decline in travel demand as a result of the coronavirus (Covid-19) pandemic.

Confirmed cases on coronavirus stood at 2,716,917 globally while the death toll has reached 190,985.