The Airlines industry may lose $63 billion to $113 billion in revenue for the passenger traffic globally in 2020, which depends on how the coronavirus spreads, International Air Transport Association (IATA) stated on Thursday.
The last time the industry faced a revenue shock of this magnitude was in 2009 during the global financial crisis, IATA Chief Economist Brian Pearce said at a media briefing in Singapore. The $63 billion figure is for a scenario where the disease is contained in current markets with over 100 cases as of March 2, following a v-shaped recovery, IATA said.
$113 billion estimates are for a scenario with a broader spreading of the virus
The $113 billion estimates are for a scenario with a broader spreading of the disease. This fall would translate to 11-19 percent of worldwide passenger revenue loss. IATA on Feb. 20 estimated the outbreak would cost carriers $29.3 billion in revenue if the outbreak was largely confined to markets associated with China.
The coronavirus has spread to more than 85 countries in the world and has infected over 95,000 people around the world. The deadly virus which originated from central China has claimed the lives of more than 3,200 people around the world till now.
(With agency inputs)