Most airlines around the world are planning on cutting staff the next 12 months, the International Air Transport Association (IATA) said on Aug. 5, citing an internal survey.
The global aviation body revealed the industry sentiment in a statement following a quarterly business confidence survey of more than 300 airlines during this Covid-19 pandemic.
IATA said: "With the recovery in demand likely to be slow, 55 per cent of respondents expect to have to decrease employment levels over the coming 12 months."
Geneva-based IATA represents about 290 airlines comprising 82 per cent of global air traffic.
Size of contraction
About 45 per cent of airlines have reportedly already reduced their staff numbers in the second quarter of 2020 due to cost-cutting measures.
Some 57 per cent expect passenger yields to fall over the next 12 months.
They also think ticket prices could fall due to the weak recovery in demand.
About 19 per cent expect to see a gradual increase in fares once the balance between supply and demand is restored.
IATA expects air traffic to return to pre-crisis levels in 2024.
It estimates that traffic will fall by 63 per cent in 2020 compared to 2019, with a shortfall of US$419 billion in the sector due to the coronavirus crisis.
Europe and the Asia-Pacific region are expected to be the first to return to 2019 traffic levels.
The Americas are expected to experience a slower recovery, according to IATA.
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