Global airlines will lose $314 billion (Dh1.15 trillion) in passenger revenue this year, a 55 per cent drop from 2019, as the rapid spread of the coronavirus and ensuing travel bans continue to hurt the industry, the International Air Transport Association said on Tuesday.
The latest assessment is much higher than the organisation's previous estimate of a $252bn loss just three weeks ago on March 24.
“The industry’s outlook grows darker by the day,” said Alexandre de Juniac, Iata ’s director general and chief executive in a statement.
“The scale of the crisis makes a sharp, V-shaped recovery unlikely. Realistically, it will be a U-shaped recovery with domestic travel coming back faster than the international market. We could see more than half of passenger revenues disappear.”
Passenger demand globally is forecast to plunge 48 per cent year-on-year in 2020 due to travel restrictions imposed by governments to contain the spread of the disease, as well as weaker economic growth.
The International Monetary Fund on Tuesday said the global economy is heading for its worst decline since the Great Depression of the 1930s, forecasting a 3 per cent decline for global GDP this year, from a previous estimate of a 3.3 per cent increase.
“The world is heading for a recession. The economic shock of the Covid-19 crisis is expected to be at its most severe in the second quarter when GDP is expected to shrink by 6 per cent,” Iata said. “The impact of reduced economic activity in the second quarter alone would result in an 8 per cent fall in passenger demand in the third quarter.”
As of early April, the number of flights globally was down 80 per cent compared to 2019, largely due to severe travel restrictions imposed by governments to fight the spread of the virus, according to Iata.
Airlines worldwide are suspending most or all of their passenger flights, grounding jets and axing jobs in efforts to preserve cash.
Iata urged governments to step up efforts to help by extending direct financial support to the industry, as well as granting loans and tax relief.
“Airlines could burn through $61bn of cash reserves in the second quarter alone. That puts at risk 25 million jobs dependent on aviation. And without urgent relief, many airlines will not survive to lead the economic recovery,” Mr de Juniac said.
Covid-19 has infected more than 1.9 million people worldwide and killed more than 120,000, according to Johns Hopkins University, which is tracking global data on the outbreak. More than 453,289 people have also recovered.
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A list of the animal rescue organisations in the UAE
The biog
First Job: Abu Dhabi Department of Petroleum in 1974
Current role: Chairperson of Al Maskari Holding since 2008
Career high: Regularly cited on Forbes list of 100 most powerful Arab Businesswomen
Achievement: Helped establish Al Maskari Medical Centre in 1969 in Abu Dhabi’s Western Region
Future plan: Will now concentrate on her charitable work
Company%20profile
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The specs
Engine: 2.0-litre 4cyl turbo
Power: 261hp at 5,500rpm
Torque: 405Nm at 1,750-3,500rpm
Transmission: 9-speed auto
Fuel consumption: 6.9L/100km
On sale: Now
Price: From Dh117,059
Brief scores
Day 1
Toss England, chose to bat
England, 1st innings 357-5 (87 overs): Root 184 not out, Moeen 61 not out, Stokes 56; Philander 3-46
Awar Qalb
Director: Jamal Salem
Starring: Abdulla Zaid, Joma Ali, Neven Madi and Khadija Sleiman
Two stars
Expert advice
“Join in with a group like Cycle Safe Dubai or TrainYAS, where you’ll meet like-minded people and always have support on hand.”
Stewart Howison, co-founder of Cycle Safe Dubai and owner of Revolution Cycles
“When you sweat a lot, you lose a lot of salt and other electrolytes from your body. If your electrolytes drop enough, you will be at risk of cramping. To prevent salt deficiency, simply add an electrolyte mix to your water.”
Cornelia Gloor, head of RAK Hospital’s Rehabilitation and Physiotherapy Centre
“Don’t make the mistake of thinking you can ride as fast or as far during the summer as you do in cooler weather. The heat will make you expend more energy to maintain a speed that might normally be comfortable, so pace yourself when riding during the hotter parts of the day.”
Chandrashekar Nandi, physiotherapist at Burjeel Hospital in Dubai
Best Foreign Language Film nominees
Capernaum (Lebanon)
Cold War (Poland)
Never Look Away (Germany)
Roma (Mexico)
Shoplifters (Japan)
UEFA CHAMPIONS LEAGUE FIXTURES
All kick-off times 10.45pm UAE ( 4 GMT) unless stated
Tuesday
Sevilla v Maribor
Spartak Moscow v Liverpool
Manchester City v Shakhtar Donetsk
Napoli v Feyenoord
Besiktas v RB Leipzig
Monaco v Porto
Apoel Nicosia v Tottenham Hotspur
Borussia Dortmund v Real Madrid
Wednesday
Basel v Benfica
CSKA Moscow Manchester United
Paris Saint-Germain v Bayern Munich
Anderlecht v Celtic
Qarabag v Roma (8pm)
Atletico Madrid v Chelsea
Juventus v Olympiakos
Sporting Lisbon v Barcelona
Monster
Directed by: Anthony Mandler
Starring: Kelvin Harrison Jr., John David Washington
3/5
THE BIO:
Favourite holiday destination: Thailand. I go every year and I’m obsessed with the fitness camps there.
Favourite book: Born to Run by Christopher McDougall. It’s an amazing story about barefoot running.
Favourite film: A League of their Own. I used to love watching it in my granny’s house when I was seven.
Personal motto: Believe it and you can achieve it.
SHAITTAN
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