The International Air Transport Association (IATA) Director, Advocacy and Strategy, Africa, Mrs Adefunke Adeyemi says if by the end of June airlines globally does not get financial support, 50% of them will become insolvent.
Mrs Adeyemi stated during a webinar by Aelex Partners in collaboration with SY&T Communications.
He noted that the recent analysis by IATA also showed that if by the end of next month, airlines have not received financial assistance, 90% would be insolvent.
She said airlines are running out of cash and accumulating more debts despite the lull in operations due to the COVID-19.
The IATA’s Director said the body had been making frantic efforts to get financial assistance from the world’s governments for the airlines.
We have been engaging with government across Africa as well as donor organizations and international organizations and we have been reaching out to governments directly.”
Explaining the negative impact of the COVID-19 on the industry in Africa, Adeyemi said for Africa aviation revenues for airlines were down by over $6billion not just for the airlines but also airports and air navigation service providers and so many of the other businesses.
According to her, IATA estimates that the industry is going to record a loss of about $400billion, adding that this was an industry just trying to maintain a balance from a very high cost before the pandemic.