Airline revenues could decrease this year by an amount between $63 and $113 billion, depending on the spread of the coronavirus epidemic, the International Air Transport Association (IATA) warned. Last year, the total revenues of the airline industry stood at $838 billion.
The IATA warning comes after the UK regional airline Flybe announced it has been placed under special administration.
Other major airlines, such as British Airways, easyJet, Lufthansa and United Airlines, have announced cost-cutting measures to cope with the significant drop in bookings.
Last month, IATA predicted that the epidemic could reduce global airline revenues by $29 billion, following the decline in travel worldwide. There is potential for the Covid-19 epidemic to cause a 13% decline in demand for airline services in Asia this year, IATA warned.
Source: Economica
Frequently Asked Questions
How much is the airline industry expected to lose due to COVID-19?
IATA estimates a potential revenue loss between $63 billion and $113 billion for 2020, depending on the virus’s spread.
Which airlines have already taken measures?
Flybe has entered administration, while major carriers like British Airways, Lufthansa, and United Airlines are implementing cost-cutting measures.
What is the predicted impact on the Asian market?
IATA warns that the COVID-19 epidemic could lead to a 13% decline in demand for airline services in Asia this year.