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Coronavirus may erase $29 bn from airlines’ revenue, says IATA

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Logistics Update Africa
Coronavirus may erase $29 bn from airlines’ revenue, says IATA

The outbreak of the Coronavirus threatens to slash $29 billion of this year's revenue for global airlines, mostly Chinese carriers, as travel crashes worldwide, according to the International Air Transport Association (IATA).

The trade group for the airlines said that the virus causing COVID-19 has the potential for causing a 13 percent decline in demand for Asian carriers this year. The contraction comes at a time when Asian airlines' sales had been growing.

In the same scenario, carriers outside Asia-Pacific are forecast to bear a revenue loss of $1.5 billion, assuming the loss of demand is limited to markets linked to China. This would bring total global lost revenue to $29.3 billion (5 percent lower passenger revenues compared to what IATA forecast in December) and represent a 4.7 percent hit to global demand.

 

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