46 Million Jobs Could Be At Risk Due Ot Collapse Of Global Air Travel, Says New Report

According to new research46 million jobs from the global aviation industry could be wiped off because of the impact of the novel coronavirus pandemic which has almost decimated the global airline market and industry.

This report highlights the degree of damage the health crisis has had on the aviation industry as well as the impact on the global economy of a prolonged downturn in air travel and tourism industry.

The pandemic could result in the loss of more than half of the 88 million jobs that are supported by the aviation industry – at least temporarily, found a report published on Wednesday by the Air Transport Action Group (ATAG), a Geneva-based coalition of aviation industry organizations. Industry experts expect the global airline industry to return back to the pre pandemic levels not until 2024.

The report noted that about 4.8 million jobs could be lost because of the pandemic at airlines, airports and civil aerospace companies alone which would amount to a 43 per cent job loss compared to the pre pandemic levels. The report is based on an analysis by Oxford Economics.

The report further notes that the impact in air travel-related tourism could result in job loss of another 26 million people while the jobs of 15 million people who work in companies that sell goods and services into the air transport supply chain or to aviation industry workers will also be at risk of loss. 

While there can be a shrinking of 52 per cent in economic activity supported by aviation which would be equivalent to a loss of $1.8 trillion in global GDP, more than one third jobs in airlines could be lost.

According to the report, the pandemic will have “far-reaching implications on the industry for many years”. The report also helped to highlight the extent to which the livelihoods of millions of workers rely on global air travel. The global airline industry came to a virtual standstill in April when the pandemic was at its height according to the report according to the report with lockdowns all across the world and virtually no air traveling. Experts expect the demand for air travel to remain suppressed for quite a few years now.

“There have been reductions in passenger traffic caused by shocks in the past, but never a near total shutdown of the global system,” said the report, which predicts passenger numbers in 2020 will be less than half last year’s level.

“It is absolutely incumbent on governments to do whatever they can to help the sector get back on its feet so we can bring back those jobs and that economic activity,” Michael Gill, executive director of ATAG said in a statement. Gill called for certainty rather than “random quarantine declarations and constantly changing lists of acceptable and unacceptable destinations.”

(Adapted from CNN.com)

Categories: Economy & Finance, Entrepreneurship, Geopolitics, HR & Organization, Regulations & Legal, Strategy, Sustainability, Uncategorized

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