Coronavirus could cost the aviation industry four times as much as previously thought, the International Air Transport Association has said.
IATA now estimates the financial impact at $63 billion if the virus is contained within current markets, and $113 billion if it spreads to previously less-affected markets.
The news comes after the organisation updated its analysis of the financial impact of the novel coronavirus (COVID-19) public health emergency on the global air transport industry.
Alexandre de Juniac, IATA’s chief executive, said, “The turn of events as a result of COVID-19 is almost without precedent. In little over two months, the industry’s prospects in much of the world have taken a dramatic turn for the worse.
“It is unclear how the virus will develop, but whether we see the impact contained to a few markets and a $63 billion revenue loss, or a broader impact leading to a $113 billion loss of revenue, this is a crisis.”
He also again called for action from governments to combat the growing crisis.
De Juniac said, “Many airlines are cutting capacity and taking emergency measures to reduce costs. Governments must take note. Airlines are doing their best to stay afloat as they perform the vital task of linking the world’s economies.
“As governments look to stimulus measures, the airline industry will need consideration for relief on taxes, charges and slot allocation. These are extraordinary times.”
Previous estimates from 20 February put the lost revenues at $29.3 billion in the belief that the effects would mostly be contained within the Chinese market.
This proved to be well off the mark, as the virus has spread to more than 80 countries infecting 90,000 people and killing 3,000.
