Airlines can’t afford refunds as millions of jobs at risk, says IATA Director General


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Airlines can’t afford refunds as millions of jobs at risk, says IATA Director General

On Tuesday, the 7th of April 2020, the International Air Transport Association (IATA), a trade body or a cartel of the world’s airlines’ founded back in the 1945s accountable for setting up the technical standards and price fixing, had reiterated the magnitude of risks the global aviation industry had been facing off adding that a majority of airline’s finances were too fragile to afford a customer refund and more than 25 million jobs in aviation industry had been under tremendous risk as a slew of major airliners had begun to slash jobs.

More importantly, latest remark from the IATA, headquartered in Montreal, Canada, came forth days after two of the Democratic lawmakers in the US Congress had urged the US airlines to pay off the refunds for flight cancellations in cashes instead of vouchers for future travels followed by a $25 billion in bailout packages for the US airliners, while the global airlines’ trade body had also cautioned that a half of the world’s airliners would go bankrupt by early May.

Meanwhile, adding that the airlines could not afford the refunds and the customers should accept the vouchers, IATA Director General Alexander De Juniac said in the latest round of weekly press conference held by the aviation industry trade cartel on Tuesday (April 7th), “The key element for us is to avoid running out of cash so refunding the cancelled ticket for us is almost unbearable financially speaking. ”