Global airlines warned that 25 million jobs across the world could be at risk

Global airlines warned that 25 million jobs across the world could be at risk from the coronavirus air travel downturn, and held out against offering refunds to passengers as cash runs out.

The International Air Transport Association (IATA) issued the warning as part of a series of messages about the state of the airline industry while urging governments to help.

As it did so, Germanwings became the latest corporate casualty of the crisis as German parent Lufthansa announced its closure as part of a broader overhaul. Germanwings operates under the wider low-cost brand Eurowings.

In a weekly briefing, IATA highlighted job losses and the impact on the world economy if governments let airlines collapse. But a climate group said bailouts should come with stiff conditions.

Three months of severe travel restrictions plus lower-traffic over 2020 could put 25 million jobs at risk, IATA warned, adding that about a third of 2.7 million direct jobs in the airline sector had either been lost or were furloughed.

IATA, whose members include the likes of Lufthansa and British Airways parent IAG, said global air travel slumped by 70% this quarter, meaning airlines with grounded fleets and dwindling cash could not afford to issue refunds.

Director General Alexandre De Juniac said airlines, facing $35 billion of potential refund claims by the end of this quarter, hoped passengers would accept vouchers instead.

“The key element for us is to avoid running out of cash so refunding the canceled ticket for us is almost unbearable financially speaking,” De Juniac told reporters on Tuesday.