The International Air Transport Association says as revenue losses mount in Nigeria , about 91, 380 jobs in the nation ’ s aviation industry are on the line.
In a country specific analysis of the effects of COVID – 19 on airlines’ operations , IATA said Nigeria would record 3 . 5 million fewer passengers , resulting in a $ 0 . 76 bn revenue loss, risking 91, 380 jobs and $ 0 . 65bn in contribution to the country’ s economy .
The association had earlier predicted that the disruption to air travel due to the continued spread of coronavirus would cost Nigeria ’ s aviation industry over $ 434 m in revenue, 22, 200 jobs and approximately 2 . 2 million passengers up from the 853 , 000 losses in passenger volumes and $ 170 m loss in base revenue projected in early March .
IATA called for an urgent action from the government to provide financial relief to airlines as the latest scenario for potential revenue loss by carriers , especially in Africa reached $ 4 bn .
“ This translates into a drop of industry revenues of 32 per cent for Africa for 2020 as compared to 2019, ” IATA said .
The association noted that to minimise the broad damage that the losses would have across African economies , it was vital that governments stepped up their efforts to aid the industry .
IATA said , “ Many governments in the region have committed to provide relief from the effect of COVID – 19.
And some have already taken direct action to support aviation but more help is needed . IATA is calling for a mixture of direct financial support , loans , loan guarantees , support for the corporate bond market and tax relief.
“ The air transport industry is an economic engine, supporting up to 8 . 6 million jobs across Africa and the Middle East and $ 186 bn in the GDP .
Every job created in the aviation industry supports another 24 jobs in the wider economy . Governments must recognise the vital importance of the air transport industry , and that support is urgently needed . ”
According to the association , airlines are fighting for survival in every corner of the world as travel restrictions and evaporating demand mean that aside from cargo, there is almost no passenger business .
It explained that failure by governments to act now would make the crisis longer and more painful , adding that airlines had demonstrated their value in economic and social development and governments needed to prioritise them in rescue packages.
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