THE AVIATION INDUSTRY AND COVID-19

The aviation industry supports 65.5 million jobs around the world, including 10.5 million people employed at airports and by airlines, and contributes $2.7 trillion in world economic activity. According to global aviation bodies and leading airlines, it will  take three years for the industry to return to operational levels seen just before the Covid-19 pandemic broke out.

Airports Council International (ACI) World and the International Air Transport Association (IATA) say the current state of the global air transport industry risks the loss of millions of jobs.

85 per cent of the world's airlines are at risk of insolvency, and without state support could go bankrupt before year-end.

IATA has predicted that global airlines are expected to lose $314 billion in ticket sales this year, a fall of 55 per cent compared to 2019, because of Covid-19 with demand likely to hit rock bottom in the second quarter.  It estimates that approximately 25 million jobs in aviation and its related value-chains - including the tourism sector - are at risk in the current crisis. Airlines will burn through roughly $61 billion in liquidity in the second quarter alone as demand plummets by 80 per cent while posting a quarterly mid loss of $39 billion.

ACI EUROPE indicates that Europe’s airports saw a -98.6% drop in passenger traffic during the month of April compared to the same period last year, resulting in a loss of -202 million passengers. The European network of 500+ airports welcomed only 2.8 million passengers during April, a volume that was handled in that same month last year by Dublin airport alone. Europe’s airports are on their knees. They have lost more than 315 million passengers since the start of the COVID-19 outbreak and they will pass exceed half a billion passengers lost before the end of May. All their revenue sources have essentially dried up, most of their staff furloughed and investments stopped - yet cash is still flowing out in running costs as most have remained at least partially open. As of April 1, 2020, European airports estimate to have a 24.6 billion U.S. dollars loss in revenue in 2020 due to the coronavirus outbreak.This cannot last much longer before large scale and irreversible damage is inflicted not just on staff, local sub-contractors and business partners – but also on air connectivity, tourism and regional economies. If some air traffic and revenue generation capabilities are not restored in time for the peak Summer months, airports across Europe will go bust, with a far-reaching domino effect upon local communities. 

Travel and Tourism's Total Contribution to GDP (2018)

1. Malta: 27%
2. Montenegro: 25%
3. Croatia: 25%
4. Cyprus: 23%
5. Greece: 20%
6. Portugal: 18%
7. Spain: 15%
8. Austria: 15%
9. Italy: 13%