Kingdom's GDP to fall by JD850m in August — IATA

AMMAN — The International Air Transport Association (IATA) estimates that the Kingdom's gross domestic product (GDP) supported by the aviation sector will fall by JD850 million during August, as the impact of the COVID-19 crisis on the industry is constantly increasing. 

The assessments made by IATA economic team showed that expectations at the local level for the major aviation markets in the region have deteriorated since last June, as nearly 39,600 aviation-related jobs are at risk in August, with the number of passengers dropped by 4 million compared with the same period of 2019.

Muhammad Al Bakri, IATA’s Regional Vice President for Africa and the Middle East, in a statement carried by the Jordan News Agency, Petra, warned that the consequences of stopping air traffic for airlines are “severe”.

Bakri also commended airlines’ contributions in supporting the region's economies along with providing thousands of jobs.

Renewing calls for relief measures, he also highlighted the importance of “joint action and immediate coordination” to resume air traffic.

IATA estimates air traffic to go down by 56 per cent compared with 2019, while it previously said it will fall by 51 per cent.

GDP supported by aviation in the region could fall to reach $85 billion, while previous estimate was $66 billion, according to IATA's website.

Air transport in Jordan contributes $2.2 billion to the country’s GDP and supports some 70,000 jobs. This includes spending by foreign tourists who travel to Jordan by air which supports $1.3 billion of GDP, according to the international association.

In total, 5.7 per cent of the country's GDP is sustained by the input of the travel sector and foreign tourists arriving by air, according to IATA.