IATA: COVID-19 putting 91,380 jobs at risk in Nigeria’s aviation industry

The International Air Transport Association (IATA) says reduced demand caused by the coronavirus outbreak has put 91,380 jobs at risk in Nigeria’s aviation industry.

The association said travel restrictions imposed by several countries to control the spread of the coronavirus have resulted in fewer passengers and revenue loss.

“In Nigeria, it’s 3.5 million fewer passengers, resulting in a $ 0.76 billion revenue loss, risking 91,380 jobs and $0.65 billion in contribution to Nigeria’s economy,” the association said in a statement.

In total, it projected that airlines in Africa and the Middle East have lost $23 billion (N8.74 trillion).

Muhammad Al-Bakri, the IATA regional vice president for Africa and the Middle East, said about $19 billion (N7.22 trillion) and $4 billion (N1.52 trillion) had so far been lost by the airlines operating in the Middle East and Africa, respectively.

He, therefore, called for urgent action from governments in Africa and the Middle East to provide financial relief to the airlines.

Al-Bakri explained that some of the impacts at the national level included Saudi Arabia, United Arab Emirates, Egypt, Qatar, Jordan, South Africa, Nigeria, Ethiopia and Kenya.

“In Saudi Arabia, it’s 26.7 million fewer passengers, resulting in a $5.61billion revenue loss, risking 217,570 jobs and $13.6 billion in contribution to Saudi Arabia’s economy.

“In UAE, it’s 23.8 million fewer passengers, resulting in a $5.36 billion revenue loss, risking 287,863 jobs and $17.7 billion in contribution to the UAE economy.

“In Egypt, 9.5 million, it’s fewer passengers, resulting in a $1.6 billion revenue loss, risking almost 205,560 jobs and around $2.4 billion in contribution to Egypt’s economy.

“In Qatar, it’s 3.6 million fewer passengers, resulting in a $1.32 billion revenue loss, risking 53,640 jobs and $2.1billion in contribution to Qatar’s economy.

“In South Africa, there were 10.7 million fewer passengers, resulting in a $2.29 billion revenue loss, risking 186,850 jobs and $3.8 billion in contribution to South Africa’s economy.

“The same thing in Ethiopia, with 1.6 million fewer passengers, resulting in a $0.3billion revenue loss, risking 327,062 jobs and $1.2 billion in contribution to Ethiopia’s economy.

“In Kenya, it’s 2.5 million fewer passengers, resulting in a $ 0.54 billion revenue loss, risking 137,965 jobs and $1.1 billion in contribution to Kenya’s economy.”

Al-Bakri urged governments to support the industry explaining that the IATA advises a mixture of direct financial support, loans, loan guarantees and support for the corporate bond market tax relief.

Max Air, a domestic airline in Nigeria, told staff on Wednesday that it would not pay salaries for the period during which operations are suspended.