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3/5/2020, 10:50 AM (Source: TeleTrader)
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IATA: Airlines to lose up to $113B over coronavirus

Airline revenue losses for the entire 2020 are expected to come in between $63 billion and $113 billion in the passenger business, the International Air Transport Association (IATA) said in updated coronavirus COVID-19 impact guidelines on Thursday. Initial estimates only took into account China-related losses and were seen at $29.3 billion. IATA hasn't made a prognosis on cargo business losses.

While consumer demand is seen as declining globally, in the case of a limited spread, IATA said it expects a drop in China business passengers by 23% and a 24% fall in travel to Italy which would lead to an 11% passenger revenue loss overall. Meanwhile, in the case of an extensive spread of the virus, IATA said losses from Asia-Pacific will approach $60 billion in 2020.

IATA’s Director General and CEO Alexandre de Juniac called on governments to "take note" of the troubles faced by airlines as the industry "will need consideration for relief on taxes, charges and slot allocation."

Breaking the News / VP