Airlines UK has written to the chancellor Rishi Sunak urging to extend the government’s job retention scheme beyond June.
The aviation industry body said that consumer demand for flights would be gradual, once coronavirus restrictions were eased.
The UK government promised in response to the pandemic, that employees would receive 80% of their salaries via the scheme.
Staff who are temporarily laid off, would qualify for this up to £2500 a month of their earnings.
Airlines UK wrote that the job retention policy should be reviewed on a sector by sector basis.
If the scheme was halted, airlines would be “facing a cliff-edge post-June, whilst services are scaled up”.
Virgin Airlines Looking for Bailout
Virgin Airlines are thought to be still in talks over a bailout with the government.
Sir Richard Branson has already revealed in an open letter, that he has asked the Treasury for a commercial loan.
The business mogul also said that he would put up his luxurious Necker island as collateral for any state aid received.
Yet the chancellor has previously warned the airline industry, to search for any emergency funding from elsewhere.
Jobs Risk to European Airlines
The International Air Transport Association (IATA), has warned that there are high risks to jobs across the European airline industry.
IATA analysis concluded that potential revenue loss for European carriers could reach as high as $89 billion.
Passenger numbers are also projected to be a colossal 55% down from last year.
Overall, the present 90% collapse in air traffic puts around 6.7 million jobs at risk.
Which could lead to a negative GDP impact of $452 billion across Europe.
In the UK, the impact of coronavirus could mean 140 million fewer passengers travelling.
IATA predicted a $26.1 billion revenue loss, leading to a risk of almost 661,200 jobs in the industry.
Losses in the region of $50.3 billion in contributions to the UK economy, is also expected.