IATA renews call in Latin America & Caribbean to support sector

Α Decrease font Enlarge font
IATA renews call in Latin America & Caribbean to support sectorWith revenues having largely dried up, but costs needing to be covered, airlines are burning cash at unprecedented rates

The International Air Transport Association (IATA) has renewed its call on governments in Latin America and the Caribbean to support the air transport industry both in terms of providing financial relief and support, as well as by facilitating the restart of services in line with the International Civil Aviation Organization’s (ICAO) Take-off guidelines.

“Aviation across the continent is now going into its fourth month of standstill. Even with a few countries have allowed the resumption of service, the majority are still keeping us grounded. As an industry, we have worked with all stakeholders in the value chain to ensure that we can restart in line with the globally agreed Take-off guidelines published by ICAO. Unfortunately, we are not making the expected progress with governments implementing these, and any further suspension of operations is placing the future of aviation in jeopardy”, said Peter Cerdá, IATA’s Regional Vice President for the Americas.

With revenues having largely dried up, but costs needing to be covered, airlines are burning cash at unprecedented rates. IATA analysis suggests that airlines consumed cash reserves of USD 61 billion in the second quarter alone. Therefore, governments urgently need to provide financial relief and support, which has been particularly lacking in the Latin America and Caribbean region. Globally the promised government financial aid is currently around USD 123 billion which equals 14% of 2019’s total airline revenues of USD 838 billion. For Latin America and the Caribbean government aid of USD 0.3 billion has been promised, which equates to only 0.8% of the 2019 revenue (USD 38 billion) generated by the airlines in the region. This is the lowest percentage of any global region. Three of the four largest airlines in the region have already filed for Chapter 11 bankruptcy protection in the US, and four further airlines have already ceased operations.

IATA’s latest financial forecast sees the industry losing USD 84.3 billion in 2020, with airlines in Latin America and the Caribbean set to post a USD 4 billion loss. Aviation’s contribution to GDP in the region is set to shrink by USD 98 billion this year, putting 4.1 million jobs at risk.

Breaking this down by major markets in the region looks as follows:

With the recent announcement of the European Union from Latin America and the Caribbean region, only international arrivals from Uruguay will be permitted, a further drop in revenues is predicted. Based on current calculations, for every month that this restriction remains in place, a further USD 300 million could be lost.

Aviation has up to now played a crucial role in all economies across the continent. Latin America and the Caribbean simply lack viable alternatives such as roads or railroads. Therefore, aviation must be allowed to resume as quickly as possible. The necessary guidelines on how aviation can Function without becoming a vector for the spread of COVID-19 are outlined in the ICAO Take-off guidelines. These protocols have been devised with both medical and scientific knowledge and clearly spell out how aviation can once again safely fulfill its role as a catalyst for the socio-economic development of the region. However, too many governments are dragging their feet in terms of implementation or are proposing options that will impose further operational and financial challenges on airlines. In Colombia, the decision-making power for reopening airports has been passed to individual mayors; Panama keeps extending the country’s border closure even though its airport is one of the main hubs in the Americas, and Argentina has again pushed back the restart date for domestic flights.

“What we need as an industry is for governments to provide clear dates on when we can restart flying. The agreed ICAO Take-off protocols are the harmonized global blueprint for resuming services. States now need to implement these and not each individually reinvent the wheel. While we understand that governments are concerned for the health of their citizens, hindering an industry that has developed robust protocols to ensure that air travel does not become a vector for the spread of COVID-19 will not help in the so badly needed socio-economic recovery”, said Cerdá.

Fortunately, some governments are allowing aviation to restart, for example, both international and domestic flights in Ecuador resumed a month ago, with more islands in the Caribbean – like the Bahamas, Dominican Republic, Haiti, and Jamaica, welcoming back visitors. Domestic flights in Peru are also set to resume as of 15 July, a very important step for a country which relies heavily on aviation for tourism and exports.

“It is good to see that we are making some progress in the reopening of markets, especially across the Caribbean. However, governments need to continue to align their protocols with those of the ICAO. Diverging from these places an operational burden on the airlines and creates confusion among travelers, at a time where restoring confidence is essential. Ensuring that all stakeholders along the travel value chain work together is essential so we can contribute to the economic revival of this region”, said Cerdá.

RELATED TOPICS: GreeceGreek tourism newsTourism in GreeceGreek islandsHotels in GreeceTravel to GreeceGreek destinationsGreek travel marketGreek tourism statisticsGreek tourism report

Photo Source: Wikimedia Commons License: CC-BY-SA Copyright: AEMoreira042281

Tornos
  1. 07/08 17:17

    United Kingdom returns twelve stolen religious icons to Greece

  2. 07/08 17:07

    AP: Hilton hotel sales drop in second quarter as travel freezes

  3. 07/08 17:03

    Greek producers lose half their peach crops to storm in Kozani

  4. 07/08 17:00

    Calls to 112 will be geolocalized with absolute accuracy in Greece

  5. 07/08 16:47

    Greek Foreign Minister: Agreement with Egypt a major gain for Greece

  6. 07/08 16:28

    Greek PM: Upgrading public transport a government priority

  7. 07/08 14:12

    Art Athina 2020 goes digital in Greece due to the coronavirus pandemic

  8. 07/08 12:53

    153 new coronavirus cases and no fatalities reported in Greece

  9. 07/08 11:57

    Greek island of Poros under curfew to contain Covid-19 infections

  10. 07/08 10:42

    Only 400 Covid-19 cases from 1.3 million tourists recorded during July in Greece

  11. 06/08 19:24

    Kassandra festival in Chalkidiki peninsula of Greece cancelled

  12. 06/08 19:20

    Good dialogue with Colombian Mayors Medellin relaunced

  13. 06/08 19:14

    134 Iraqi migrants voluntarily returned from Greece to their country

  14. 06/08 16:36

    Greek Defence Minister speaks on the phone with Lebanese counterpart

  15. 06/08 16:31

    Greek International Food Market satisfies demand for Virtual Experiences

  16. 06/08 16:02

    A new framework for cooperation on tourism between Greece and Egypt

  17. 06/08 15:51

    Austrian Interior Minister to visit Greek capital of Athens on August 25-26

  18. 06/08 14:47

    Coronavirus pandemic pushes Greek unemployment to 17%

  19. 06/08 14:36

    Greek government: Battle with virus won only when vaccine is found

  20. 06/08 13:11

    Storm front Thalia to spread to western central Greece on Thursday

  21. 05/08 20:14

    Cyprus conditions on Greek travelers perplexes Greek Tourism Minister

  22. 05/08 20:08

    The Enigma of Keros: Documentary on one of the top riddles of antiquity

  23. 05/08 20:01

    Hellenic College and Holy Cross will open with online classes in September

  24. 05/08 15:51

    Foreign ministry issues phone lines for Greeks affected by Beirut explosions

  25. 05/08 15:47

    Greek rescue team departs for Lebanon to help in aftermath of explosion

  26. 05/08 14:38

    Media reports: Greek woman dead and two injured in Beirut explosion

  27. 05/08 13:55

    Greek Prime Minister: Our national vaccine is our ‘philotimo’

  28. 05/08 12:54

    Greek professor warns young people can fall seriously ill from Covid-19

  29. 05/08 12:17

    More than 100 killed in two massive explosions in Beirut of Lebanon (videos)

  30. 05/08 11:44

    121 new Covid-19 cases and no fatalities reported in Greece

  31. 04/08 15:25

    New IATA’s Customer, Financial & Digital Services Senior VP

  32. 04/08 15:20

    Greece plans to make property buying easier for foreigners

  33. 04/08 15:17

    77 new Covid-19 cases and two fatalities in Greece during last 24 hours

  34. 04/08 15:12

    Press conference on COVID-19 scheduled in Greece today at 18:00

  35. 04/08 15:05

    Greek government cabinet reshuffle focused on improving functionality

  36. 04/08 14:51

    GNTO presents outdoor campaign to boost Greek tourism

  37. 04/08 14:05

    EU: Restrictions within states not necessarily accompanied by travel restrictions

  38. 04/08 09:27

    Despite coronavirus concerns, Greece allows cruise ships not coming yet

  39. 03/08 23:33

    "CHANIA: Always Pure" advertising campaign launched

  40. 03/08 20:29

    Face masks mandatory on decks of passenger ferries in Greece

  41. 03/08 19:33

    Greek museums and sites open on Monday night for August full moon

  42. 03/08 19:18

    Rescheduling of summer transport helps congestion in Greek capital of Athens

  43. 03/08 17:23

    Measures adopted at Cyprus' airports to reduce passenger congestion

  44. 03/08 15:07

    Greek PM: EU must be on high alert until Covid-19 vaccine is found

  45. 03/08 13:45

    Greece's national strategic plan for the Recovery Fund presented in October

  46. 03/08 12:51

    Media: Secret island getaway of Andros near Athens in Greece

  47. 03/08 11:13

    UNWTO, ONCE Foundation and ENAT call for reopening of tourism

  48. 02/08 21:01

    Recovery Fund dominates Greek cabinet's last meeting before summer recess

  49. 02/08 20:55

    World’s top swimmers at The Authentic Marathon Swim in Evia island

  50. 02/08 20:43

    AP: Cyprus make mask-wearing compulsory in big indoor spaces

  51. 02/08 16:51

    110 new recorded Covid-19 cases in Greece during last 24 hours

  52. 02/08 13:06

    IATA: Airlines and airports issue stark warning to European Prime Ministers

  53. 02/08 12:07

    Glyfada Maritime Golf: New tournament for shipping community in Greece

  54. 02/08 11:33

    Bank of Greece projects extra growth rate of 2% for the period 2021-26

  55. 02/08 11:26

    Mandatory use of face masks in all indoor public places in Greece

  56. 02/08 09:49

    myKEPlive: 114 Greek citizens booked appointments on platform's first day

  57. 02/08 09:37

    Greek government: 'Greece's international alliances bring results'

  58. 01/08 14:18

    Greek Parliament closes for summer, having passed 95 acts of legislation

  59. 01/08 12:33

    Greek tourism's new promotion campaign: "More Than a Destination"

  60. 01/08 12:26

    Greek government tightens up restrictions for coronavirus pandemic

  61. 01/08 11:52

    AP: Venice Film Festival reveals selections for September fete

  62. 01/08 11:34

    Survey: Greeks European Union's most religious zealots and God believers

  63. 01/08 11:28

    United Kingdom presents info campaign for British nationals in Greece

  64. 31/07 21:55

    78 new confirmed Covid-19 cases and three fatalities recorded in Greece

  65. 31/07 16:41

    Frequency of services in Athens Public transport network increases

  66. 31/07 15:06

    Emergency rules for Muslims observing Kurban Bayrami in Greece presented

  67. 31/07 14:33

    Pizza Hut chain announces its departure from Greece due to Covid-19

  68. 31/07 14:26

    Mask defiance results in slight rise of COVID-19 cases in Greece

  69. 31/07 13:54

    Greek government: Imported cases not a big problem at the moment

  70. 31/07 12:34

    The 16th Festival of Classical Music on Greek island of Syros

  71. 31/07 12:18

    Parliament-funded construction of Greece's biggest ICU ward to begin shortly

  72. 31/07 12:18

    Passenger traffic rises in the Greek port of Piraeus

  73. 31/07 11:24

    Tensions between Greece and Turkey are de-escalating in the Aegean

  74. 31/07 11:02

    AP: Sarajevo's landmark hotel faces hard times amid Covid-19 pandemic

  75. 30/07 23:21

    Βank of Greece issues three GDP forecasts for 2020 from -4.4% to -9.4% for 2020

  76. 30/07 22:17

    August full moon free events across Greece

  77. 30/07 22:06

    Greece welcomes cruises again but wants proof passengers are COVID-19 safe

  78. 30/07 21:36

    Space Tourism: Virgin Galactic gives peek at spacecraft cabin with a view

  79. 30/07 21:30

    Greek government: We reacted with calmness, determination and confidence

  80. 30/07 21:15

    UNWTO: Tourism restarts as 40% of destinations ease travel restrictions

  81. 30/07 20:02

    65 new official Covid-19 cases and no fatalities recorded in Greece

  82. 30/07 18:23

    Greece restarts voluntary migrant returns suspended due to the pandemic

  83. 30/07 18:17

    Suburban railroad service restored after Aspropyrgos fire in Attica

  84. 30/07 17:51

    National Hellenic Society’s program features ‘Reflections on Greek-America’

  85. 30/07 16:04

    Greek PM urges experts not to hesitate sounding Covid-19 alarm, if needed

  86. 30/07 15:01

    Greek elected officials call on U.S. to rebuff decision for Aghia Sophia

  87. 30/07 14:44

    Environmental divers clean up HMS Perseus to protect marine life in Ionian

  88. 30/07 13:44

    Greece's Culture Minister visits Epidaurus Asclepeion in the Peloponnese

  89. 30/07 11:11

    National Theatre in Athens presents 'My Mother's Sin' in English

  90. 30/07 02:15

    EU warned that actions against Greece will impact relations with Turkey

  91. 30/07 02:02

    Monastery of Panagia Soumela reopens in Pontos of Turkey

  92. 30/07 01:44

    Greece records 57 new Covid-19 cases and no fatalities on Wednesday

  93. 30/07 01:17

    New study: Ancient Greek temples designed with accessibility in mind

  94. 30/07 01:05

    Travelers from the United States need online form and QR code to fly to Greece

  95. 29/07 22:50

    Use of masks extended to all retail stores, pharmacies, hair salons in Greece

  96. 29/07 19:27

    FinMin: Greek government drafts new regulatory framework on debt settlement

  97. 29/07 19:24

    Greece dominates Travel + Leisure’s list of top-20 islands in Europe for 2020

  98. 29/07 18:59

    BoG chief: Greece will get major boost from European Union recovery fund

  99. 29/07 17:56

    New coronavirus mask measures and island parties crackdown in Greece

  100. 29/07 16:12

    Greece raises €812.5 million in six-month T-bill auction at lower cost