International Finance

Airlines in UAE could lose $5.36 bn in revenue due to coronavirus

UAE airlines coronavirus
IATA reports that around 287,863 jobs could be cut in the UAE aviation sector

Airlines in the UAE could lose around $5.36 billion in revenue due to the coronavirus pandemic, according to the International Air Transport Association (IATA).

The aviation sector could also witness job cuts of around 287, 863, warned the association.

The aviation sector in the UAE provides employment to around 800,000 people in the UAE and contributes to around $47.4 billion to the economy, accounting for 13.3 percent of the country’s gross domestic product (GDP).

All the airlines in the UAE have cancelled most of its flights as the country has locked down its borders to curb the spread of the Covid-19 pandemic.

The International Air Transport Association also revealed that all the airlines in the Middle East could suffer a potential revenue loss of around $19 billion, accounting for an industry revenue decline of 39 percent for 2020 as compared to 2019.

Saudi airlines could lose around 26.7 million passengers resulting in a $5.61 billion revenue loss, risking 217,570 jobs and $13.6 billion in contribution to the kingdom’s economy. Qatar also, will have 3.6 million fewer passengers resulting in a $1.32 billion revenue loss, risking 53,640 jobs and $2.1 billion in contribution to the state’s economy.

In a statement, IATA said, “To minimise the broad damage that these losses would have across the African and Middle East economies, it is vital that governments step up their efforts to aid the industry. Many governments in the region have committed to provide relief from the effect of Covid-19. And some have already taken direct action to support aviation including the UAE. But more help is needed.”

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