The International Air Transport Association (IATA) has renewed its call for governments in the Middle East to provide more financial relief to airlines as the latest IATA scenario for potential revenue loss by carriers in the region reached US$24 billion for the Middle East, US$5 billion more than what was expected at the beginning of April 2020.

IATA said job losses in aviation and related industries are also expected to reach 1.2 million, which is half of the region's 2.4 million aviation-related employment. 

Full-year 2020 traffic is also expected to plummet by 51% compared to 2019 from the earlier estimate of 39% and GDP supported by aviation in the region could fall by US$66 billion from US$130 billion.

“Airlines in the Middle East continue to be battered by the impact of COVID-19. Passenger traffic has all but ground to a halt and revenue streams have evaporated. No amount of cost-cutting will save airlines from a liquidity crisis. The collapse of air transport will have devastating effects on countries’ economies and jobs,” said Muhammad Al Bakri, IATA’s Regional Vice President for Africa and the Middle East.

He noted that in a region where aviation is a key pillar of many nations’ economies, the effect will be much worse, thus, direct financial support is essential to maintain jobs and ensure airlines can remain viable businesses.

Specifically, the following impacts are expected at a national level:

• Saudi Arabia: 35 million fewer passengers resulting in a US$7.2 billion revenue loss, risking 287,500 jobs and US$17.9 billion in contribution to Saudi Arabia's economy;
• UAE: 31 million fewer passengers resulting in a US$6.8 billion revenue loss, risking 378,700 jobs and US$23.2 billion in contribution to UAE's economy
• Egypt: 13 million fewer passengers resulting in a US$2.2 billion revenue loss, risking 279,800 jobs and USD3.3 billion in contribution to Egypt's economy;
• Morocco: 11 million fewer passengers resulting in a US$1.7 billion revenue loss, risking 499,000 jobs and US$4.9 billion in contribution to Morocco's economy;
• Iran: Seven million fewer passengers resulting in a US$1.8 billion revenue loss, risking 206,900 jobs and US$4.3 billion in contribution to Iran's economy;
• Kuwait: Two million fewer passengers resulting in a US$1 billion revenue loss, risking 24,100 jobs and USD1.6 billion in contribution to Kuwait's economy;
• Algeria: Eight million fewer passengers resulting in a US$0.8 billion revenue loss, risking 169,800 jobs and US$3.1 billion in contribution to Algeria's economy;
• Qatar: Eight million fewer passengers resulting in a US$1.7 billion revenue loss, risking 70,000 jobs and USD2.8 billion in contribution to Qatar's economy;
• Tunisia: Three million fewer passengers resulting in a US$0.6 billion revenue loss, risking 92,700 jobs and US$1.2 billion in contribution to Tunisia's economy;
• Oman: Three million fewer passengers resulting in a US$0.7 billion revenue loss, risking 51,500 jobs and US$1.7 billion in contribution to Oman's economy.