IATA: What would a ‘Grexit’ Mean for the Eurozone Air Passenger Market?

Athens, Greece. Photo source: airpano.com

In its latest research report, the International Air Transport Association (IATA) looks into Greece’s possible exit from the Eurozone and examines the potential impact of a “Grexit” on the region’s air passenger market.

“There remains sizeable uncertainty about what a so-called ‘Grexit’ would mean for the global economy and financial markets, particularly in the long run,” IATA notes in the report.

According to IATA, the past few years have been mixed ones for the Eurozone’s air passenger market.

“A Grexit-type event would be expected to cause considerable disruption in the near term,” IATA says.

However, the association suggests that a “Grexit-type event” could help to facilitate a more balanced – and ultimately healthier – European economy in the long run and also provide the basis for faster long-run growth for air travel too.

“In fact, as our scenario analysis illustrates, the lasting impact of a well-managed and relatively contained Grexit-type event may not be appreciably worse than the status quo scenario,” IATA concludes in the report.

“All told, even if some compromise is reached between Greece and its creditors in the coming weeks and months, the inherent economic tensions within the Eurozone will persist. In the absence of lasting policies to alleviate debt burdens and to tackle competitiveness mismatches within the bloc, a Grexit-type event will remain a possibility for the foreseeable future.”

To read the whole report, press here.