BD to witness 49pc drop in passenger demand this year: IATA

IATA forecasts BD airlines will lose USD 1,090m in revenue, putting 63,300 jobs at risk
- A Monitor Desk Report 15 Jul, 2020 | 879 Views|-+
Dhaka: Bangladesh will witness a 49 per cent drop in passenger demand for air travel in 2020 compared to last year due to the coronavirus pandemic. As a result Bangladeshi carriers will see their revenues go down by USD 1,090 million this year compared to 2019, according to the latest forecast released by the global airlines trade body International Air Transport Association on July 13.

The 49 per cent drop in passenger demand in air travel for Bangladesh this year, compared to last, amounts to 5,660,000 passengers.

This will put a total of 63,300 jobs at risk in the aviation and other related sectors in Bangladesh, read the forecast by IATA.

Calling 2020 the worst year in the aviation history, Conrad Clifford, Regional Vice President for Asia Pacific, IATA said that airlines are currently in survival mode.

Mentioning the losses that carriers in Asia-Pacific will be experiencing, he called for the effective implementation of the International Civil Aviation Organisation’s Take-off guidelines, while the region’s governments facilitate the restart of air connectivity.

IATA also estimated that, being the first region to feel the brunt of the COVID-19 crisis, airlines in the Asia-Pacific region will be the hardest hit, with losses expected to be USD 29 billion for 2020. This is more than a third of the USD 84.3 billion industry losses globally.

The region’s airlines will see passenger demand (measured in revenue passenger kilometers, RPK) go down by 53.8 per cent this year, while capacity (in available seat kilometers, ASK) will be reduced by 39.2 per cent.

“It will take a few years for the industry to get back to 2019 levels of activity. In the interim, governments will need to continue providing financial relief and assistance to airlines as well as flexibility in slot usage. We are also working with airports and air navigation service providers to identify areas of cooperation with a view to reducing costs for airlines,” said Clifford.

Also on Bangladesh Monitor