International Air Transport Association (IATA) has estimated a combined revenue loss of $63 – $113 billion due to the coronavirus outbreak which has spread far and wide across the world. Travel and tourism sector has been badly hit.
Many exhibitions and events have been cancelled or indefinitely postponed and if the virus continues to spread unabated the losses could double or even move beyond highly affecting airlines financial health. The projected loss is on account of passenger traffic and not cargo transportation.
As per IATA which represents some 290 airlines comprising over 80% of the global air traffic, financial markets have reacted strongly to the latest coronavirus outbreaks. Aviation market in countries like Australia, China, Japan, Malaysia, Singapore, South Korea, Thailand and Vietnam will be drastically hit.
As of now we are uncertain as to how to contain the virus which is a major concern. IATA chief said that governments across several countries will need to provide stimulus measures in terms of lowering taxes and charges to help the airline industry.
