IATA (International Air Transport Association)
According to the International Air Transport Association (IATA), airlines will have to cut more work in the next twelve months to survive the pandemic crisis or face failure.
IATA Director-General and CEO Alexandre de Juniac said during a webinar that while the body does not advocate job cuts, it is the only way airlines can survive.
According to the latest IATA reports, global airline revenue will decline by 46 percent in 2021 compared to the record $ 838 billion in 2019, compared to previous projections of a 29 percent decline.
The body also warned that the airline industry would burn $ 77 billion in cash during the second half of 2020 (almost $ 13 billion / month or $ 300,000 per minute), despite restarting operations.
Therefore, maintaining labor productivity levels from 2019 to 2021 will require employers to reduce by 40 percent, meaning further job losses or salary cuts are needed to bring unit labor costs down to the lowest point of the past year.
“If airlines get to a point where they reduce this work, from pilots and flight attendants, because they can not do otherwise, I would ask the pilots and air hostess to accept that this is a very difficult rule and accept it to the airline. to help “operate to survive.” De Juniac said
He also added that 1.3 million jobs are at risk of being called a labor catastrophe, which he said the government would have to provide financial relief to airlines to save the case.
The global aviation body said governments around the world have so far provided $ 160 billion in support, including direct aid, wage subsidies, corporate tax breaks and specific tax cuts in the industry, including fuel taxes.
“Air travel is particularly sensitive to case numbers. International travel is affected by government travel restrictions, which are imposed due to fears of importing COVID-19 cases. In those circumstances, we think a test regime is a way forward. “To avoid quarantine restrictions that are actually the same as a travel ban,” said Brian Pearce, chief economist at IATA.
The slow recovery of air travel will mean that the airline industry will burn at an average rate of between 5 and 6 billion dollars per month in 2021, IATA said in its report.
Kenya’s national airline Kenya Airways (KQ) recently announced that it is insisting on having its pilots paid per trip because it wants a lower wage bill to stay afloat.