IATA: the level of proposed assistance to airlines is insufficient
Created on 09.09.2020 08:50
The IATA see the need to continue the financial assistance to airlines from national governments, noting the industry's recovery is not as rapid as previously anticipated, according to the Ato source.
The association estimates that since the COVID-19 pandemic has begun, governments have collectively invested approximately $ 123 billion in the airline industry. In areas, in which the support was provided, it was able to prevent massive airline bankruptcies. However, IATA notes that this is not enough to held out the industry for ongoing protracted crisis. The association does not call for direct benefits, but requests to consider various types of support, such as cost savings, subsidies for specific flights, including investments.
IATA encourages continued efforts to provide assistance to the industry. According to Brian Pierce, the association's chief economist, July was "very disappointing." Passenger traffic was lower than preliminary estimates, 79.8% was below the level of the same month previous year, and there is a tangible risk of a further decline in the coming months. The fastest recovery has recovered in the Asia-Pacific region - 72.2% below the level of the previous year. Demand in North America is still 80.6% lower than last year, while in Europe is 81.3% lower.