Global carriers have lost over $27.8 billion to the outbreak and spread of coronavirus, the International Air Transport Association (IATA) said at the weekend.
It said in a report endorsed by its Director-General/Chief Executive Officer, Alexandre de Juniac, that initial assessment of the impact of the Novel Coronavirus 2019 outbreak (COVID-19) showed a potential 13 per cent full-year loss of passenger demand for carriers in the Asia-Pacific region.
The body said considering growth for the region’s airlines, which was forecast to be 4.8 per cent, the net impact will be an 8.2 per cent full-year contraction compared to last year demand levels.
IATA said the scenario would translate into a $27.8 billion revenue loss this year for carriers in the Asia-Pacific region—the bulk of which would be borne by carriers registered in China.
It said $12.8 billion would be lost in the China domestic market alone.
In the same scenario, IATA said carriers outside Asia-Pacific will bear a revenue loss of $1.5 billion, assuming the loss of demand is limited to markets linked to China.
IATA said: “This would bring total global lost revenue to $29.3 billion , five per cent lower passenger revenues compared to what IATA forecast in December representing a 4.7 per cent hit to global demand.