Airlines Set To Lose $30bn in Revenue Due To Coronavirus, IATA Predicts

Airlines all around the globe are set to lose $29.3bn of revenue this year following the coronavirus outbreak, IATA has predicted the loss.

The International Air Transport predicted a fall in demand of air travel majorly with flights route in Asia-Pacific region.

The region is expected to take the biggest blow with a loss of $27.9 bn revenue income this year 2020 while those outside Asia they will lose $1.5bn in revenue from Air Travel.

Since the outbreak of the virus, there has been reduced demand in air travel and most aviation’s are cutting down travels on routes, with other instances going with reduced capacity. The epidemic is a resemblance to the Sars (severe acute respiratory syndrome) outbreak of 2003.

Even though the expected downfall in revenue, IATA stills believes that the airline’s profitability is not bound by the expected loss as it cautioned. Their base of belief is on the previous outbreak in 2003 where the airline industry suffered a blow but resuscitated back with a quick recovery.

Although the major focus is on China which is the center of the virus, IATA warned that the impact will be universally felt all around the globe.

This is confirmed by the Australia’s Qantas which said that the cost of the outbreak will be up to 99m USD and European carrier Air-France KLM estimated 213m USD for the period February and April.

IATA focused a growth in flights in air travel demand between 2015 and 2035, becoming the leading driver but the paramedic is cutting short the forecast.