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Airlines may lose $113 billion in revenue due to coronavirus virus: IATA

Earlier, when the virus was still confined to China, IATA’s revenue impact estimate was significantly lower, at $29.3 billion.

By: ENS Economic Bureau | Mumbai |
Updated: March 20, 2020 10:41:29 am
Coronavirus, Coronavirus india, Coronavirus impact on aviation sector, Coronavirus impact on flights, IATA on Coronavirus, Coronavirus China, Indian express Industry players fear that the impact of this Black Swan event on the industry will be similar to that of the global financial crisis of 2008. (File Photo)

The International Air Travel Association (IATA) has estimated that the financial impact of the coronavirus (Covid-19) on the passenger business of airlines would be somewhere between $63 billion and $113 billion.

Earlier, when the virus was still confined to China, IATA’s revenue impact estimate was significantly lower, at $29.3 billion.

Industry players fear that the impact of this Black Swan event on the industry will be similar to that of the global financial crisis of 2008. “Airline share prices have fallen nearly 25 per cent since the outbreak began, some 21 percentage points greater than the decline that occurred at a similar point during the SARS (Severe Acute Respiratory Syndrome) crisis of 2003,” IATA said on Thursday.

Assuming a decrease in passenger numbers in all the markets, which have at least 10 confirmed Covid-19 positive cases as of March 2, the IATA estimated a 19 per cent loss in worldwide passenger revenues, aggregating to around $113 billion.—FE

Here’s a quick coronavirus guide for you to stay updated: Who all should be tested for Covid-19 and when? | How should you quarantine yourself? | How often (and how) should you clean your home? | What is the Janata Curfew announced by PM Modi? | Who are restricted from coming to India, and from when? | How long can the virus live on surfaces or in air around you? | Still more Coronavirus Q&A Explained news here

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