Nigeria’s airlines will lose 3.5 million passengers resulting in a $ 0.76 billion revenue loss. No less than 91,380 jobs originating directly and indirectly from the airlines in Africa with $0.65 billion in contribution to economy are also at a risk of being lost.
These were the latest projections the International Air Transport Association which saw potential revenue loss of the industry in Africa and Middle East reached $23 billion ($19 billion in the Middle East and $4 billion in Africa.)
To get out of the red line, the IATA has reiterated its call for urgent action from governments in Africa and the Middle East to provide financial relief to airlines.
- World Bank, IMF set up group to drive recovery, growth in the face of COVID-19
- African blood donation rate falls by 17% in wake of COVID-19 pandemic – WHO
- Covid-19: World Bank, African Union agree modalities to deploy 400m J&J…
- Nigerian employers and employee monitoring
- Nigerian economy to benefit from AfDB’s AUD$600-mn first ever Australian…
The association stated in its latest report, saying translates into a drop of industry revenues of 32 percent for Africa and 39 percent for the Middle East for 2020 as compared to 2019.
According to IATA, some of the impacts at national level include: Saudi Arabia – 26.7 million fewer passengers resulting in a $5.61billion revenue loss, risking 217,570 jobs and US$13.6 billion in contribution to Saudi Arabia’s economy.
UAE- 23.8 million fewer passengers resulting in a $5.36 billion revenue loss, risking 287,863 jobs and US$17.7 billion in contribution to the UAE’s economy.
Egypt- 9.5 million fewer passengers resulting in a $1.6 billion revenue loss, risking almost 205,560 jobs and around $2.4 billion in contribution to the Egyptian economy.
Qatar- 3.6 million fewer passengers resulting in a US$1.32 billion revenue loss, risking 53,640 jobs and US$2.1billion in contribution to Qatar’s economy.
Jordan- 2.8 million fewer passengers resulting in a US$0.5 billion revenue loss, risking 26,400 jobs and US$0.8 billion in contribution to Jordan’s economy.
South Africa -10.7 million fewer passengers resulting in a US$2.29 billion revenue loss, risking 186,850 jobs and US$3.8 billion in contribution to South Africa’s economy.
Nigeria – 3.5 million fewer passengers resulting in a US$ 0.76 billion revenue loss, risking 91,380 jobs and US$0.65 billion in contribution to Nigeria’s economy.
Ethiopia – 1.6 million fewer passengers resulting in a US$0.3billion revenue loss, risking 327,062 jobs and US$1.2 billion in contribution to Ethiopia’s economy.
Kenya – 2.5 million fewer passengers resulting in a US$ 0.54 billion revenue loss, risking 137,965 jobs and US$1.1 billion in contribution to Kenya’s economy.
To minimise the broad damage that these losses would have across the African and Middle East economies, it is vital that governments step up their efforts to aid the industry. Many governments in the region have committed to provide relief from the effect of COVID-19. And some have already taken direct action to support aviation including the United Arab Emirates.
In addition to financial support, IATA called for regulators to provide a package of measures to ensure air cargo operations, including fast track procedures to obtain overflight and landing permits, exempting flight crew members from 14-day quarantine, and removing economic impediments (overflight charges, parking fees, and slot restrictions), providing financial relief on Airport and Air Traffic Control (ATC) charges and taxes, ensuring aeronautical information is published, timely, accurately, and without ambiguity, ensuring the airlines can plan and execute their flights.
Equities February 25, 2020