IATA says borders may not fully reopen until October

iStock [For illustration]

Global airline industry body IATA called on governments to provide alternative forms of support and stimulus for the aviation sector as it warned that borders may not fully open until October.

The deepening nature of the crisis for airlines was highlighted by IATA's plans to delay its annual meeting from June to October because it does not expect borders to have properly re-opened to allow such a gathering by late June.

Many European airlines have said they need a summer holiday season if they are to survive after almost a year of COVID-19 restrictions which have stopped travel.

IATA Director General Alexandre de Juniac said that governments had already provided $225 billion to help airlines, through direct aid, wage subsidies, tax relief and loans, but warned more was needed.

"I urge governments to consider stimulus measures," he told reporters on Wednesday.

De Juniac said airlines did not need more debt and said that one way for government to provide support would be to subsidise tickets to help the sector.

But any government subsidies for airlines would likely spark a negative reaction from environmentalists. Aviation accounts for 2% of global carbon emissions and campaigners are calling for the reduction in flying due to COVID-19 to be permanent.

"The new normal is going to mean less flying, especially corporate travel, and the industry must adjust," said Andrew Murphy from Brussels-based green campaign group Transport & Environment.

"Public funds should be channelled into developing cleaner fuels and new plane designs, not subsiding what's still the most carbon-intensive form of travel."

De Juniac said that by October, he expected borders to have re-opened allowing the annual industry gathering to take place in Boston.

He also said that the EU's proposal on a bloc-wide "green digital certificate" to allow travel was positive.

More from Business

  • Nasdaq set to confirm bear market as Trump tariffs trigger recession fears

    The tech-heavy Nasdaq Composite index was set to confirm it was in a bear market on Friday, down more than 20 per cent from a recent record high, as investors fled riskier assets on fears that tariffs imposed by President Donald Trump could spark a trade war and tip the global economy into recession.

  • Dana Gas and Crescent Petroleum exceed 500M boe in Khor Mor field

    UAE-based Dana Gas and Crescent Petroleum, alongside their partners in the Pearl Petroleum consortium, have said the cumulative production from their Khor Mor project, the largest non-associated gas field in Iraq, has exceeded 500 million barrels of oil equivalent (boe).

  • China to impose tariffs of 34% on all US goods

    China has announced a slew of additional tariffs and restrictions against US goods as a countermeasure to sweeping tariffs imposed by US President Donald Trump. The Finance Ministry said it would impose additional tariffs of 34 per cent on all US goods from April 10.

  • Shares bruised, dollar crumbles as Trump tariffs stir recession fears

    Stocks limped to the end of the week on Friday, the dollar was set for its worst week in a month while gold flirted with a record peak as investors feared US President Donald Trump's sweeping tariffs would tip the global economy into a recession.

  • Wall Street futures sink as tariffs fuel recession fears

    US stock index futures tumbled on Thursday after President Donald Trump's sweeping tariffs on major trade partners heightened fears of an all-out trade war that could push the global economy into a recession.

News