(TAN): Global airlines could face a combined revenue loss of USD 113 billion if the coronavirus continues to spread and disrupt travel, reports said.
According to reports, International Air Transport Association (IATA), in its newest financial impact of COVID-19 on aviation, estimated losses for 2020 could be limited to USD 63 billion for passenger business if the virus is contained soon.
The IATA, which represents some 290 airlines that makes up for 82% of total air traffic, is the trade association for the world’s airlines.
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However, if the infection spreads to more markets, the losses could shoot up to USD 113 billion, thereby impacting airlines all around the world, as per reports.
The projected loss reportedly takes into account only passenger traffic.
“The turn of events as a result of COVID-19 is almost without precedent. In little over two months, the industry’s prospects in much of the world have taken a dramatic turn for the worse. It is unclear how the virus will develop, but whether we see the impact contained to a few markets and a USD 63 billion revenue loss, or a broader impact leading to a USD 113 billion loss of revenue, this is a crisis,” Alexandre de Juniac, IATA’s Director General and Chief Executive Officer was quoted by Livemint as saying.
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The markets that would take the maximum blow comprise Australia, China, Japan, Malaysia, Singapore, South Korea, Thailand and Vietnam, reports said. Airlines in Asia Pacific could reportedly suffer a loss of USD 58 billion in sales.
Several major carriers cancelled flights to and from mainland China owing to travel restrictions and a dearth of demand from passengers, reports said. As per reports, transatlantic flights and those within Europe and the United States were also cancelled.
Lufthansa cancelled 7,100 flights to European destinations for this month accounting for nearly a quarter of its total capacity. Most of the flights it cancelled are high-frequency connections within Germany or flights that serve Italy.
