INTERNATIONAL. The International Air Transport Association (IATA) has warned of the impact on airlines of the US ban on travellers from Schengen Area states.
As reported, the US government announced the suspension of inbound travel from 26 countries in Europe, effective from Friday.
IATA said that in 2019, there were 200,000 flights scheduled between the US and the Schengen Area, equivalent to around 550 per day. These handled around 46 million passengers (about 125,000 travellers per day).
On 5 March 2020, IATA estimated that the COVID-19 crisis could wipe out some US$113 billion of revenue, as reported. That scenario did not account for the strict measures that the US and other governments (including Israel, Kuwait and Spain) have since put in place.
The total value of the US-Schengen market in 2019 was US$20.6 billion, said IATA. The markets facing the heaviest impact are US-Germany (US$4 billion), US-France (US$3.5 billion) and US-Italy (US$2.9 billion).
IATA said that the economic fallout of the move would be wide-ranging.
Director General and CEO Alexandre de Juniac said: “These are extraordinary times and governments are taking unprecedented measures. Suspending travel on such a broad scale will create negative consequences across the economy.”
He added: “This will create enormous cash-flow pressures for airlines. We have already seen Flybe go under. And this latest blow could push others in the same direction. Airlines will need emergency measures to get through this crisis. Governments should be looking at all possible means to assist the industry through these extreme circumstances. Extending lines of credit, reducing infrastructure costs, lightening the tax burden are all measures that governments will need to explore. Air transport is vital, but without a lifeline from governments we will have a sectoral financial crisis piled on top of the public health emergency.”
IATA noted that the World Health Organisation (WHO) continues to advise against the application of travel or trade restrictions to countries experiencing outbreaks.
