Colors: Green Color

The International Air Transport Association (IATA) announced that demand for air services is beginning to recover after hitting bottom in April. Passenger demand in April (measured in revenue passenger kilometers or RPKs), plunged 94.3% compared to April 2019, as the COVID-19-related travel restrictions virtually shut down domestic and international air travel. This is a rate of decline never seen in the history of IATA’s traffic series, which dates back to 1990.

Leading global professional services firm Alvarez & Marsal (A&M) released its latest UAE Banking Pulse for Q1 2020 today. The report suggests that the top 10 UAE banks reported a combined 6.3% quarter-on-quarter (QoQ) drop in interest income, largely due to the low interest rate environment. The net profit declined by 22.4% QoQ, on account of a 3.6% drop in operating income and a 35% increase in provisioning. Consequently, the average return on equity (RoE) for the universe was impacted by the reduced operating income due to a series of rate cuts and increased provisioning.