The International Air Transport Association (IATA) has again re-emphasized the need for governments' support in the airline industry. Saying, Airlines will definitely fail if there is no government support.
The latest analysis shows that the airline industry cannot slash costs sufficiently to neutralize the severe cash burn caused by the pandemic and will surely lead to bankruptcies and more job losses in the coming year.
IATA has therefore once again called for more government relief measures to sustain airlines financially and avoid redundancy.
It also called on the government to embrace airport testing, reopening of borders, as well as travel without quarantine.
It has been very difficult for the industry to bounce back from the effect of the pandemic owing to another wave of COVID-19 and travel restrictions imposed by the government.
According to IATA director-general, Alexandre de Juniac, “The fourth quarter of 2020 will be extremely difficult and there is little indication the first half of 2021 will be significantly better, so long as borders remain closed and/or arrival quarantines remain in place."
“Without additional government financial relief, the median airline has just 8.5 months of cash remaining at current burn rates."
He added that "we can’t cut costs fast enough to catch up with shrunken revenues.”
“Unless governments act fast, some 1.3 million airline jobs may be at risk". De Juniac stated.
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