IATA: Virus may slash US$29b from airlines' revenue
The outbreak of the new virus threatens to erase US$29b of this year's revenue for global airlines, mostly for Chinese carriers, as travel crashes worldwide, according to IATA. The trade group said Thursday that the virus causing COVID-19 has the potential for causing a 13% decline in demand for Asian carriers this year. The contraction comes at a time when Asian airlines' sales had been growing. Global air traffic will be reduced by 4.7% for the year, marking the first overall decline in such demand since the financial crisis of 2008 and 2009, IATA said. How profits will be affected was still unclear, it said. The estimates foresee a scenario where COVID-19 has a “V-shaped impact,” similar to what happened during the SARS virus outbreak in 2003, with a sharp dive followed by a quick recovery. <br/>
https://portal.staralliance.com/cms/news/hot-topics/2020-02-24/general/iata-virus-may-slash-us-29b-from-airlines-revenue
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IATA: Virus may slash US$29b from airlines' revenue
The outbreak of the new virus threatens to erase US$29b of this year's revenue for global airlines, mostly for Chinese carriers, as travel crashes worldwide, according to IATA. The trade group said Thursday that the virus causing COVID-19 has the potential for causing a 13% decline in demand for Asian carriers this year. The contraction comes at a time when Asian airlines' sales had been growing. Global air traffic will be reduced by 4.7% for the year, marking the first overall decline in such demand since the financial crisis of 2008 and 2009, IATA said. How profits will be affected was still unclear, it said. The estimates foresee a scenario where COVID-19 has a “V-shaped impact,” similar to what happened during the SARS virus outbreak in 2003, with a sharp dive followed by a quick recovery. <br/>
