{"id":587,"date":"2020-02-28T22:24:09","date_gmt":"2020-02-28T22:24:09","guid":{"rendered":"https:\/\/travelcommunication.net\/?p=24882"},"modified":"2020-03-07T02:22:40","modified_gmt":"2020-03-07T02:22:40","slug":"coronavirus-outbreak-to-cost-airlines-30bn-in-revenue","status":"publish","type":"post","link":"https:\/\/www.travelindex.org\/media\/global-travel-news\/coronavirus-outbreak-to-cost-airlines-30bn-in-revenue\/","title":{"rendered":"Coronavirus Outbreak to Cost Airlines $30bn in Revenue"},"content":{"rendered":"
\n\t\"Coronavirus<\/a>\n\t<\/div>\n

Geneva (Switzerland) – February 27, 2020 (travelindex.com<\/a>) – IATA warns it is \u201cpremature\u201d to estimate what the potential losses would mean for global profitability. Airlines in Asia-Pacific could suffer a potential 13% full-year loss in passenger demand as a result of the coronavirus (Covid-19) outbreak.<\/p>\n

That is according to the latest analysis from the International Air Transport Association (IATA), which has revised its forecast figures for the region from an expected 4.8% growth increase to an 8.2% full-year contraction, compared to 2019 figures.<\/p>\n

Such a scenario would result in a $27.8 billion revenue loss for Asia-Pacific carriers in 2020. The majority of that would be carried by airlines registered in China, with $12.8 billion lost in that domestic market alone.<\/p>\n

IATA analysis predicts that in the same instance, carriers outside Asia-Pacific would lose $1.5 billion in revenue if the fall in demand is limited to markets linked to China.<\/p>\n

Airlines and governments are in this together. We have a public health emergency, and we must try everything to keep it from becoming an economic crisis<\/p>\n

That would bring total global lost revenue to $29.3 billion (5% lower passenger revenues compared to IATA\u2019s forecast in December) and represent a 4.7% hit to global demand.<\/p>\n

In December, IATA forecast global RPK growth of 4.1%, meaning such a loss would more than eliminate expected growth this year, resulting in a 0.6% global contraction in passenger demand for 2020.<\/p>\n

\u201cThese are challenging times for the global air transport industry. Stopping the spread of the virus is the top priority,\u201d said Alexandre de Juniac, IATA\u2019s Director General and CEO.<\/p>\n

\u201cAirlines are following the guidance of the World Health Organization (WHO) and other public health authorities to keep passengers safe, the world connected, and the virus contained.<\/p>\n

\u201cThe sharp downturn in demand as a result of Covid-19 will have a financial impact on airlines\u2014severe for those particularly exposed to the China market.<\/p>\n

\u201cWe estimate that global traffic will be reduced by 4.7% by the virus, which could more than offset the growth we previously forecast.<\/p>\n

\u201cAirlines are making difficult decisions to cut capacity and in some cases routes. Lower fuel costs will help offset some of the lost revenue, but this will be a very tough year for airlines.\u201d<\/p>\n

IATA\u2019s estimates are based on Covid-19 having a similar impact on demand to that of the SARS virus in 2003, which saw a 5.1% fall in RPKs for Asia-Pacific carriers.<\/p>\n

However, the trade association for the world\u2019s airlines added that it is \u201cpremature\u201d to estimate what the possible revenue losses would mean for global profitability.<\/p>\n

De Juniac called on governments to show leadership and follow international health regulations to ensure there is an effective global approach to containing the outbreak.<\/p>\n

He added that providing financial relief to airlines struggling to economically maintain connectivity is also important.<\/p>\n

\u201cAirlines and governments are in this together. We have a public health emergency, and we must try everything to keep it from becoming an economic crisis,\u201d said de Juniac.<\/p>\n

\u201cRelief on airport costs will help maintain vital air connectivity. Other governments should take good note and act quickly.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"

Geneva (Switzerland) – February 27, 2020 (travelindex.com<\/a>) – IATA warns it is \u201cpremature\u201d to estimate what the potential losses would mean for global profitability. Airlines in Asia-Pacific could suffer a potential 13% full-year loss in passenger demand as a result of the coronavirus (Covid-19) outbreak. That is according to the latest analysis from the International …<\/p>\n","protected":false},"author":0,"featured_media":5019,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3],"tags":[],"class_list":["post-587","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-global-travel-news"],"_links":{"self":[{"href":"https:\/\/www.travelindex.org\/media\/wp-json\/wp\/v2\/posts\/587","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.travelindex.org\/media\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.travelindex.org\/media\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/www.travelindex.org\/media\/wp-json\/wp\/v2\/comments?post=587"}],"version-history":[{"count":0,"href":"https:\/\/www.travelindex.org\/media\/wp-json\/wp\/v2\/posts\/587\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.travelindex.org\/media\/wp-json\/wp\/v2\/media\/5019"}],"wp:attachment":[{"href":"https:\/\/www.travelindex.org\/media\/wp-json\/wp\/v2\/media?parent=587"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.travelindex.org\/media\/wp-json\/wp\/v2\/categories?post=587"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.travelindex.org\/media\/wp-json\/wp\/v2\/tags?post=587"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}