The collapse of the aviation industry triggered by the new crown outbreak could lead to the loss of 46 million jobs worldwide, according to new research. At least more than half of the 88m jobs supported by the airline industry could disappear temporarily or even permanently as a result of the new crown outbreak, the Geneva-based aviation industry group ATAG said in a report released on Wednesday. Industry insiders don’t expect air travel to return to last year’s levels until 2024.
By the beginning of next year, the number of unemployed people in aviation, airports and civil aviation companies alone could reach 4.8m, down 43 per cent from the levels before the new crown, the report said.
In addition, 26 million jobs could be lost in the air travel-related tourism industry, with about 15 million jobs at risk in companies that sell goods and services to air transport supply chains or aviation workers.
Jobs at aviation companies could be cut by more than a third, or 1.3m, while economic activity supported by the airline industry could shrink by 52 per cent, meaning a loss of $1.8 trillion in global GDP.
The report said the new crown outbreak would have a “profound impact on the aviation industry”, which nearly stagnated at the peak of the new crown blockade in April and is expected to remain depressed for years to come.
“There has been a reduction in passenger traffic as a result of shocks in the past, but the global aviation system has never been more nearly stagnant than it is today,” the report said. The report predicts that the number of passengers in 2020 will be less than half what it was last year.
Aviation companies are calling on the government to provide additional financial support and coordinate rapid new coronavirus testing for passengers before flights. In addition, layoffs at major airlines and airports have begun.
U.S. airlines have warned Congress that 100,000 jobs will be at risk when the federal bailout expires Thursday. The job cuts are likely to seep into companies such as Boeing, Airbus and Rolls-Royce, which have been forced to downsizing to address weak demand.