This article first appeared in The Edge Financial Daily on April 8, 2020

KUALA LUMPUR: Some 25 million jobs in aviation and related sectors could be lost with plummeting air travel demand amid the Covid-19 crisis, according to the International Air Transport Association’s (IATA) latest study.

This is based on a scenario of severe travel restrictions lasting for three months and air travel demand recovery is delayed due to economic recession, the airline grouping said.

Out of the 25 million jobs at risk, the largest of some 11.2 million jobs are in the Asia-Pacific, followed by 5.6 million jobs in Europe, 2.9 million jobs in Latin America, two million jobs each in North America and Africa, and 900,000 jobs in the Middle East.

“Globally, the livelihoods of some 65.5 million people are dependent on the aviation industry, including sectors such as travel and tourism. Among these are 2.7 million airline jobs,” said IATA in a statement yesterday.

In the same scenario, airlines are expected to see full-year passenger revenue fall by US$252 billion (RM1.1 trillion) or 44% in 2020.

“The second quarter is the most critical with demand falling 70% at its worst point, and airlines burning through US$61 billion in cash,” said IATA.

“There are no words to adequately describe the devastating impact of Covid-19 on the airline industry. And the economic pain will be shared by 25 million people who work in jobs dependent upon airlines. 

“Airlines must be viable businesses so that they can lead the recovery when the pandemic is contained. A lifeline to the airlines now is critical,” said IATA director-general and chief executive officer Alexandre de Juniac.