USD3.3B revenue loss on Malaysia’s aviation industry due to travel restrictions: IATA

KUALA LUMPUR (Bernama) – Malaysia will likely see its passenger demand reduced by 39 per cent this year with losses in revenue reaching USD3.317 billion if severe travel restrictions due to COVID-19 lasted for three months, International Air Transport Association (IATA) said.

Its regional vice president Asia-Pacific Conrad Clifford said 169,700 potential jobs would be impacted by the travel restrictions and risked USD3.799 billion in the gross domestic product (GDP).

The Asia-Pacific region as a whole he said, would see passenger demand decreased 37 per cent this year with losses in revenue totalling USD88 billion.

“While each country will see a varying impact on passenger demand, the net result is the same. Their airlines are fighting for survival, they are facing a liquidity crisis and they will need financial relief urgently to sustain their businesses through this volatile situation,” he said in a statement.

He said governments needed to ensure that airlines have sufficient cash flow to tide them over this period by providing direct financial support, facilitating loans, loan guarantees and support for the corporate bond market.

Clifford said taxes, levies and airport and aeronautical charges for the industry should be fully or partially waived.

He said Australia, New Zealand and Singapore have announced a substantial package of measures to support their aviation industry but others in the region including India, Indonesia, Japan, Malaysia, the Philippines, South Korea, Sri Lanka and Thailand have yet to take decisive and effective action.