Kenya Airways planes are seen parked at the Jomo Kenyatta International Airport near Nairobi, Kenya on March 6, 2019. PHOTO | THOMAS MUKOYA | REUTERS • IATA estimates that the aviation industry will need $200 billion in aid globally to prevent total collapse.
• By March 11, airlines in Africa had chalked up a combined $4.4 billion in losses.
• Passenger volumes could sink by 1.2 million if the situation escalates and revenue losses to $202 million.
International air transport lobby, IATA, is asking governments to extend emergency support to airlines as the losses attributable to disruptions caused by the Covid-19 crisis mount for African carriers.
IATA says what started as a health emergency has morphed into an economic crisis across the world and that it should be given equal attention to prevent a catastrophe.
By March 11, airlines in Africa had chalked up a combined $4.4 billion in losses.
Kenya’s potential losses supersede Ethiopia’s which IATA has projected at 479,000 passengers and $79 million in revenues. Also, 98,400 jobs are at risk in Ethiopia.
Passenger volumes could however sink by 1.2 million if the situation escalates and revenue losses to $202 million.
IATA, which did not provide any analysis for Tanzania and Uganda, sees passengers volumes falling by 79,000 for Rwanda and equivalent revenue loss of $20.4 million while 3,000 jobs would be at risk. But potential losses could expand to 201,000 passengers and $52 million in foregone revenues.
Catastrophic
With a much bigger industry, South Africa will top losses on the continent with projections pointing to a six million contraction in passenger numbers and financials losses of $1.2 billion. The disruption has also put at risk 102,000 jobs in the country.
Nigeria would suffer the next big hit in Africa with an 853,000 drop in passenger numbers and $170 million in revenues.More than 22,200 jobs are also at risk in the country while any escalation would take losses to 2.2 million passengers and US$434 million in revenues.In a webinar conference with journalists, Alexandre de Juniac, IATA’s director general and chief executive said; “Stopping the spread of Covid-19 is the top priority of governments. But they must be aware that the public health emergency has now become a catastrophe for economies and for aviation.”Presenting an analysis of possible trajectories, Muhammad Al-Bakri, IATA’s vice-president for the Middle East and Africa said that Kenya was likely to harvest the brunt of losses in Eastern Africa with financial analysis […]
