Airlines lose $27.8b to Coronavirus outbreak

    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.

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