International Air Transport Association (IATA) has disclosed that Nigerian airlines have airlifted 3.5 million fewer passengers resulting in a $760 million revenue loss since the onset of the disruptions caused by COVID-19 pandemic.
The associations in a statement revealed that the fallout of the setback will endanger 91,380 jobs and $650 million contribution to the Nigerian economy.
The pandemic has also prompted the Nigerian Civil Aviation Authority (NCAA) to suspend the issuance and processing of Air Operating Certificate (AOC) and other related certificates to aviation personnel.
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IATA has therefore called on governments in Africa and the Middle East to take urgent action and also provide financial relief to airlines as the latest IATA analysis indicated that the two regions’ airlines have potentially lost $23 billion.
IATA said African airlines lost about $4 billion, while Middle East airlines lost $19 billion, which translates into a drop of industry revenues by 32 per cent for Africa and 39 per cent for the Middle East for 2020 as compared to 2019. In Its breakdown, it showed that Ethiopia airlifted 1.6 million fewer passengers resulting in a $0.3 billion revenue loss, risking 327,062 jobs and $1.2 billion in contribution to Ethiopia’s economy, while Kenya airlifted 2.5 million fewer passengers resulting in a $0.54 billion revenue loss, risking 137,965 jobs and $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, IATA’s Regional Vice President for Africa and the Middle East, Mr. Muhammad Al Bakri, said it was vital that governments step up 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 and Qatar. But more help is needed. IATA is calling for a mixture of direct financial support, loans, loan guarantees and support for the corporate bond market tax relief,” the association stated.
IATA said it was also starting to see governments in the region providing some financial and tax reliefs, including deferral of aircraft lease payments by the government of Cabo Verde, an extension of VAT refund payment dates in Saudi Arabia and positive considerations for financial relief from governments across the region including Jordan, Rwanda, Angola and the UAE.
“The air transport industry is an economic engine, supporting up to 8.6 million jobs across Africa and the Middle East and $186 billion in GDP. Every job created in the aviation industry supports another 24 jobs in the wider economy.
“Governments must recognise the vital importance of the air transport industry and that support is urgently needed. Airlines are fighting for survival in every corner of the world.
Travel restrictions and evaporating demand mean that, aside from cargo, there is almost no passenger business. Failure by governments to act now will make this crisis longer and more painful.
Airlines have demonstrated their value in economic and social development in Africa and the Middle East and governments need to prioritise them in rescue packages. Healthy airlines will be essential to jump-start the Middle East and global economies post-crisis,” IATA said.
Juliet Ekwebelam
