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RIYADH: Middle East airlines posted losses of $7.1 billion in 2020, a loss of $68.47 for each passenger flown, with traffic at less than 20 percent of 2019 levels, the International Air Transport Association (IATA) said.
January air passenger traffic in the region was down 82.3 percent compared with January 2019, according to IATA data.
The ongoing crisis puts over 1.7 million jobs in the Middle East and $105 billion in GDP at risk, IATA said as it called upon governments in the region to develop restart plans for the post-COVID-19 phase, and for regional coordination to ensure that the plans can be efficiently implemented.
Airlines in the Middle East received $4.8 billion in government aid in 2020, $4.1 billion of which was distributed through cash injections, IATA said.
Despite this, several airlines remain at risk of bankruptcy or business administration, it said.
A financially viable air transport sector will be needed to energize the recovery, and both the government and industry must be prepared, said Kamil Al-Awadhi, IATA regional vice president (Africa and the Middle East).
Government relief for airlines has avoided massive failures that would jeopardize a restart but must be prepared to spend more, while those that have not yet stepped up must recognize the growing risk to their economies as the crisis drags on, he said.
“With no clear timeline to recovery the situation is far from resolved,” he said.