Global airlines body International Air Transport Association (IATA) today said the passenger demand for air travel will contract by 49% for Indian carriers this year as compared to last year. The Indian aviation industry along with its allied sectors is set to see 30 lakh job losses in view of Covid-induced suspension of scheduled commercial flights.
Revenue to contract by $11.61 billion
The IATA has also projected that the revenue of Indian carriers will contract by $11.61 billion this year in comparison to last year due to the pandemic.
It has said airlines in the Asia-Pacific (APAC) region will be the hardest hit by the Covid crisis, with losses expected to be $29 billion for 2020. This is more than a third of the $84.3 billion industry losses globally.
The Asia-Pacific region was the first region to feel the brunt of the Covid crisis. The region’s airlines will see passenger demand (measured in revenue passenger kilometres, RPK) collapse by 53.8% this year, while capacity (in available seat kilometres, ASK) will be reduced by 39.2%.
“2020 is the worst year in aviation history and airlines are in survival mode. The carriers in Asia-Pacific will experience the largest losses at $29 billion. That’s a loss of $30.09 per passenger. In this bleak outlook, the priority is for the region’s governments to facilitate the restart of air connectivity in line with the International Civil Aviation Organisation’s Take-off guidance and principles,” said Conrad Clifford, IATA’s Regional Vice-President for Asia Pacific.
“It will take a few years for the industry to get back to 2019 levels of activity. In the interim, governments will need to continue providing financial relief and assistance to airlines as well as flexibility in slot usage. We are also working with airports and air navigation service providers to identify areas of cooperation with a view to reducing costs for airlines,” he said.