Most airlines expect job cuts over next 12 months: survey

Most airlines are considering downsizing their staff over the next 12 months due to the coronavirus crisis, the International Air Transport Association said Wednesday, citing an internal survey. "With the recovery in demand likely to be slow, 55% of respondents expect to have to decrease employment levels over the coming 12 months," global aviation body IATA said following a quarterly business confidence survey of more than 300 airlines. Some 45% reported having already reduced their staff numbers in Q2 2020 due to cost-cutting measures following the COVID-19 pandemic. Meanwhile 57% expect passenger yields to fall over the next 12 months and think ticket prices could fall due to the weak recovery in demand. Some 19% expect to see a gradual increase in fares once the balance between supply and demand is restored. It expects air traffic to return to pre-crisis levels in 2024 and estimates that traffic will fall by 63% in 2020 compared to 2019, with a shortfall of $419b in the sector due to the coronavirus crisis. Europe and the Asia-Pacific region are expected to be the first to return to 2019 traffic levels, while the Americas are expected to experience a slower recovery, according to IATA.<br/>