IATA: Massive Covid-19 Toll on Greek Economy

The coronavirus (Covid-19) health crisis is forecast at leading to a 52 percent decline in the number of passengers to Greece this year and an overall 10.1 billion dollar loss in tourism-related revenue, according to the latest report released by the International Air Transport Association (IATA) this week.

According to updated estimates, Covid-19 may lead to 3.8 billion dollars in losses for Greek airlines putting some 233,200 jobs at risk.

Overall in Europe, according to IATA’s analysis, carriers are set to suffer 89 billion dollars in losses in 2020 and see passenger demand decline 55 percent or 26 million passengers below 2019 levels.

At the same time thousands of jobs are at risk. According to IATA, the current 90 percent halt in air traffic is threatening some 6.7 million jobs and could lead to a negative GDP impact of 452 billion dollars across Europe.

“Every job created in the aviation industry supports another 24 jobs in the wider economy,” said Rafael Schvartzman, IATA regional vice president for Europe.

IATA revised its forecast upward against its March 24 estimates of 76 billion dollars in losses and a 46 percent decrease in passenger demand. In its new analysis IATA factors in severe travel restrictions lasting for three months, with a gradual lifting of containment measures in domestic markets followed by regional and intercontinental travel.

In view of this data, IATA is reiterating its call for urgent government action to preserve air services.

Source: IATA

Indicatively, the coronavirus impact in other countries: UK – down by 140 million passengers and losses of up to 26.1 billion dollars. Spain – down by 114 million passengers and 15.5 billion dollars in revenue loss. Italy – down by 83 million passengers and 11.5 billion dollars in lost revenues.

“As airlines face an unprecedented liquidity crisis, we desperately need European government financial and regulatory support,” said Schvartzman, calling for confidence-building actions to encourage a return to travel including governments providing economic stimulus and coordinated measures to ensure that travel is safe.