The International Air Transport Association (IATA) the total global lost revenue for airlines could be $29.3 billion due to coronavirus.
IATA announced that its initial assessment of the impact of the novel coronavirus 2019 outbreak — also known as COVID-19 — shows a potential 13% full-year loss of passenger demand for carriers in the Asia-Pacific region.
“The sharp downturn in demand as a result of COVID-19 will have a financial impact on airlines — severe for those particularly exposed to the China market,” said Alexandre de Juniac, IATA’s director general and CEO.
Here's how the group explained it in a press release:
“Considering that growth for the region’s airlines was forecast to be 4.8%, the net impact will be an 8.2% full-year contraction compared to 2019 demand levels. In this scenario, that would translate into a $27.8 billion revenue loss in 2020 for carriers in the Asia-Pacific region—the bulk of which would be borne by carriers registered in China, with $12.8 billion lost in the China domestic market alone. In the same scenario, carriers outside Asia-Pacific are forecast to bear a revenue loss of $1.5 billion, assuming the loss of demand is limited to markets linked to China. This would bring total global lost revenue to $29.3 billion (5% lower passenger revenues compared to what IATA forecast in December) and represent a 4.7% hit to global demand."