55% of airlines intend to cut the number of their employees


Most airlines intend to cut their staff over the next 12 months at a time when the resumption of air navigation remains subject to mysterious future prospects, as a result of the Covid-19 epidemic, according to a report by the International Air Transport Association (IATA) on Wednesday.
The Federation said in a statement that “55% of the airline companies officials who expect to be forced to reduce the number of their employees during the next 12 months” due to a navigation movement that will remain weak in the near term, according to the results of a form on the heads of companies confidence, put forward by the Union to more than 300 An airline in the world.
And 45% of company heads stated that they have already limited the number of their employees, due to the repercussions of the Covid-19 crisis on the air transport sector.
57% of the respondents expected their companies ’profitability to decline in the next 12 months, and they believe that ticket prices may decline in light of weak demand recovery, and 18% of them believed that prices will rise gradually after the balance between supply and demand returns.
The International Air Transport Association, which includes 290 airlines, expects the return of air traffic to the pre-crisis level in 2024, and the estimated decline in air traffic by 63% in 2020 compared to 2019, with a loss of profits of $ 419 billion for the sector as a result of the health crisis.
Asia-Pacific and Europe will be the first two regions where air navigation will return to its level in 2019, while a return to normal will be slower in North America and Latin America than any other region of the world, according to IATA.
The air navigation sector was directly affected by the health crisis, which paralyzed air transport almost completely, and caused the layoffs of tens of thousands of employees.
The United Company of America announced that it may lay off 36 thousand employees, while American Airlines mentioned the possibility of cutting 25 thousand jobs.
German Lufthansa intends to cancel 22,000 jobs, while Air Canada intends to lay off 20,000 employees, British Airways 12,000 employees, Air France-KLM 12,500 employees, Australian Qantas 6,000, Scandinavian SAS 5,000 and British EasyJet 4,500.
Latam, the largest in Latin America, announced the abolition of 2,700 jobs and positioned itself on the model of Colombian Avianca under the protection of US bankruptcy law.
The bankruptcy company, Virgin Australia, said on Wednesday it would close one of its subsidiaries, cut 3,000 jobs, and a US company is to repurchase it.
As for the British Virgin Atlantic, it declared bankruptcy in the United States, announcing the abolition of three thousand jobs.


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