IATA estimates airline’s global revenue losses $113 billion in 2020
Travel Biz News —
The International Air Transport Association (IATA) estimates 2020 global revenue losses for the passenger business of $113 billion in a scenario with a broader spreading of COVID-19.
IATA’s previous analysis put lost revenues at $29.3 billion based on a scenario that would see the impact of COVID-19 largely confined to markets associated with China.
Airline share prices have fallen nearly 25 per cent since the outbreak began, some 21 percentage points greater than the decline that occurred at a similar point during the SARS crisis of 2003, according to a statement issued by IATA.
“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 $63 billion revenue loss, or a broader impact leading to a $113 billion loss of revenue, this is a crisis,” IATA said.
“Many airlines are cutting capacity and taking emergency measures to reduce costs. Governments must take note. Airlines are doing their best to stay afloat as they perform the vital task of linking the world’s economies. As governments look to stimulus measures, the airline industry will need consideration for relief on taxes, charges and slot allocation. These are extraordinary times,” said Alexandre de Juniac, IATA’s Director General and CEO.
The virus has spread to over 80 countries and forward bookings have been severely impacted on routes beyond China.
More than 92,000 cases have been recorded worldwide, with 80,552 in China, where the virus originated. China also accounts for the vast majority of deaths – 3,042 to date.
IATA (International Air Transport Association) represents some 290 airlines comprising 82% of global air traffic.
Photo : Thai Airways crew disinfect the cabin of an aircraft to prevent spread of COVID-19 at Bangkok Airport , Thailand recently .- REUTERS
March 6 , 2020
