Airlines in the Middle East could lose $24bn of passenger revenue this year compared to 2019, as carriers in the region continue to be battered by the impact of Covid-19, according to International Air Transport Association.

That is $5bn more than what was expected at the beginning of the month, IATA’s regional vice president (Africa and the Middle East) Mohamed al-Bakri said on Thursday.

Job losses in aviation and related industries could grow to 1.2mn. That is half of the region’s 2.4mn aviation-related employment. Previous estimate was 0.9mn.

Full-year 2020 traffic is expected to plummet by 51% compared to 2019. Previous estimate was a fall of 39%.

GDP supported by aviation in the region could fall by $66bn from $130bn. Previous estimate was $51bn.

These estimates, IATA noted, are based on a ‘scenario of severe travel restrictions lasting for three months, with a gradual lifting of restrictions in domestic markets, followed by regional and intercontinental.’

IATA renewed its call for government relief measures as the impacts of the Covid-19 crisis in Mena deepen. To minimise the broad damage that these losses would have across the Middle East economies, it is vital that governments step up their efforts to aid the industry.

IATA has also called for a combination of direct financial support, loans, loan guarantees and support for the corporate bond market and tax relief.

In addition to vital financial relief, the industry will also need careful planning and co-ordination to ensure that airlines are ready when the pandemic is contained.

IATA is scoping a comprehensive approach to re-starting the industry when governments and public health authorities allow.

A series of virtual regional summits, bringing together governments and industry stakeholders are taking place this week. The main objectives will be understanding what is needed to re-open closed borders, and agreeing solutions that can be operationalised and scaled efficiently.

Al-Bakri said, ‘Airlines in the Middle East continue to be battered by the impact of Covid-19. Passenger traffic has all but ground to a halt and revenue streams have evaporated. No amount of cost cutting will save airlines from a liquidity crisis. The collapse of air transport will have devastating effects on countries’ economies and jobs.

‘And in a region where aviation is a key pillar of many nations’ economies the effect will be much worse. Direct financial support is essential to maintain jobs and ensure airlines can remain viable businesses.’

He said, ‘As governments struggle to contain the Covid-19 pandemic, an economic catastrophe has unfolded. Re-starting aviation and opening borders will be critical to the eventual economic recovery. Airlines are eager to get back to business when and in a way that it is safe. But starting up will be complicated.

‘We need to make sure that the system is ready, have a clear vision of what is needed for a safe travel experience, establish passenger confidence and find ways to restore demand. Co-operation and harmonisation across borders will be essential to restart aviation.’