Berlin, Germany (CWBN)_ According to a report issued by the International Air Transport Association (IATA) concerning the effects of the Covid-19 pandemic on the air travel industry and European economies, further business and economic deterioration and loss of job opportunities are to be expected well into 2021.
In comparison to other regions of the world the air industry in Europe is expected to take the brunt of the pandemic with loses of up to USD 11.9 billion and a EBIT margin of negative 9.6 percent. Moreover it is noted that passenger transportation will fall by around 70 percent this year, and is among the worst performance levels globally.
IATA Regional Vice-President for Europe, Rafael Schvartzman said that “Our projections for this year and next are little short of a disaster for European air transport. Border restrictions and quarantine measures have brought demand to a halt and the region has been affected even worse than most other parts of the world.”
He added that “There is optimism over a vaccine, but as our forecast for next year shows, this is unlikely to come in time to prevent hundreds of thousands more job losses in the industry unless governments take immediate action. The focus must remain on rapid testing of passengers so that quarantine can be eliminated, and borders safely opened.”
With air connectivity within Europe down by about 81 percent owing to travel restriction and public fears of contracting the virus, it is expected that the after effects will be felt in terms of economic recovery.
“We see hope in vaccines, but mass inoculation is still a long way off, so European governments and the European Commission must act quickly to help preserve what remains of the continent’s aviation industry and air transport network,” Schvartzman added.
