Airlines to lose €30 billion …

… due to coronavirus

Airport in soth east Asia, where airlines stand to loseVarious media sources report that the International Air Transport Association (IATA) predicts that airlines could lose almost US$30 billion in revenue worldwide due to travel restrictions imposed because of the coronavirus outbreak. In particular, IATA has estimated that those in the Asia-Pacific are expected to lose US$27.8 billion in revenue, while airlines outside the region are predicted to lose US$1.5 billion.

“Airlines are making difficult decisions to cut capacity and in some cases routes. This will be a very tough year for airlines,” said IATA Director-General Alexandre de Juniac, quoted by the BBC on Friday. The estimates, added Mr de Juniac, are based on the losses suffered by the airline industry due to the 2003 SARS (severe acute respiratory syndrome) outbreak, which saw demand for air travels sink 5.1% in the Asia-Pacific region.

Indonesia, along with many other countries, is currently restricting flights to and from China while also banning travellers who have been to China, including on layovers, in recent times from visiting the country. Garuda Indonesia and Lion Air, Indonesia’s two biggest airlines, each operate 30 flights to Chinese cities per week, which have been suspended through the course of the coronavirus outbreak.

3 thoughts on “Airlines to lose €30 billion …”

  1. Although on a lesser scale, the Cruise Industry has been similarly affected with a 10 to 15 % predicted downturn in bookings.

    Carnival Corporation ( owners of the Diamond Princess ) are allegedly estimating the cost of cancelling all their Asian cruises until the end of April to be in the region of $ 400 million and similarly Royal Caribbean Cruises cancellations have already cost that company a reported $ 136 million with another estimated $ 115 million if they continue to he end of April.

    With the situation still evolving further losses seem inevitable.

    Reply

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