A long and difficult journey lies ahead for aviation industry hit hard by COVID-19
The International Air Transport Association has published its revised outlook for the airline industry for 2020.
Wed, 25 Nov 2020 20:16:24 GMT
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AI Generated Summary
- The global net loss estimate for the aviation industry in 2020 has surged by 41 percent, reaching $119 billion, as delays in the industry's recovery hamper financial outlook.
- Africa is forecasted to incur losses of $2 billion, reflecting the continent's sluggish aviation sector performance worsened by COVID-19 impacts and stringent quarantine measures hampering recovery.
- The aviation industry advocates for the replacement of quarantine requirements with efficient testing protocols to ensure passenger safety, revive air travel, and enhance industry sustainability.
The aviation industry continues to face turbulent times as the International Air Transport Association (IATA) recently released its revised outlook for 2020. The global net loss estimate has surged by 41 percent compared to the forecast in June, with losses now projected to reach around $119 billion, up from $84 billion previously anticipated. Mohammed Al-Bakri, the Regional Vice President for Africa and the Middle East at IATA, shed light on the key drivers behind this grim forecast during an interview with CNBC Africa.
Al-Bakri highlighted the main reason for the heightened losses as the delay in the industry's recovery. Initially, there were hopes that borders would reopen, restrictions would ease, and governments would relax their stringent measures by the second half of the year. However, the global reality painted a different picture, with a much slower-than-expected pace of recovery leading to increased financial woes for airlines worldwide.
Zooming in on Africa's performance, IATA forecasts losses of $2 billion for the continent, painting a bleak picture of the region's aviation sector. Al-Bakri noted that Africa's slow pre-COVID performance combined with the pandemic's adverse impact has taken a severe toll on the industry. Despite some countries lifting border restrictions, the stringent quarantine measures in place in many African nations are hindering the sector's recovery, lagging behind global counterparts.
Discussing strategies to safely reopen borders without compromising passenger safety or industry profitability, Al-Bakri referenced the CART-1 and CART-2 reports by the International Civil Aviation Organization (ICAO). These reports outline a multi-layered approach to health measures aimed at ensuring traveler safety while preventing the spread of the virus through air travel. However, the persistent use of lengthy quarantines poses a significant barrier to the industry's revival. IATA urges governments globally and in Africa to replace quarantine requirements with rapid, scalable, cost-effective testing to facilitate a much-needed recovery.
The call to remove quarantines in favor of efficient testing methods is crucial to reviving air travel, as Al-Bakri emphasized the impracticality and deterrent nature of lengthy quarantines for travelers. By adopting the recommended health protocols and testing procedures, the aviation industry can navigate through these challenging times and pave the way for a more sustainable and resilient future.