Airlines in Asia-Pacific stand to lose US$27.8b in coronavirus crisis: IATA

Airlines in Asia-Pacific stand to lose US$27.8b in coronavirus crisis: IATA

PARIS: Airlines operating in the Asia-Pacific region stand to lose a combined US$27.8 billion of revenue this year in the ongoing coronavirus crisis, the International Air Transport Association said on Thursday (Feb 20).

The estimate is based on projections of a 13 per cent full-year decline in passenger demand, mostly in China, the trade body said in a statement.

IATA said its estimate assumed that COVID-19 behaves like a SARS outbreak nearly two decades ago, which was “characterised by a six-month period with a sharp decline followed by an equally quick recovery”.

Airlines in China’s domestic market alone are estimated to lose around US$12.8 billion in revenues.

Carriers outside the Asia-Pacific region are seen suffering US$1.5 billion in losses.

This brings worldwide airline revenue lost to the virus to a projected US$29.3 billion, IATA said.

READ: Singapore Airlines to cut flights as COVID-19 outbreak hits demand
READ: Qantas cuts flights to Asia as COVID-19 hits profits
READ: Vietnam Airlines says losing US$10.8 million in revenue a week due to virus

If however, the virus spreads more widely to Asia-Pacific markets then impacts on airlines from other regions would be larger, IATA warned.

IATA had previously estimated Asia-Pacific airlines to register growth of 4.8 per cent this year, but they are now on course instead for a contraction of 8.2 per cent, it said.

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