IATA has announced airlines could realize between USD 63 billion and USD 113 billion in lost revenue in 2020, depending on the extent of the coronavirus outbreak, the company said.
The association´s latest assessment is more than twice its initial estimate of lost global airlines revenues losses resulting from the outbreak, when it estimated a likely USD 29.3 million hit to airline revenues globally.
IATA offers scenarios based on limited spread of the virus and extensive spread.
The limited spread analysis takes into account existing countries with at least 100 confirmed coronavirus cases. These include China, Singapore, Japan, Italy and Iran. It also estimates falls in consumer confidence in other markets in North America, Asia-Pacific and Europe.
Of the USD 63 billion revenue hit, IATA´s assessment shows China accounting for more than a third of this. Markets associated with Asia, including China, would account for $47 billion of the total revenue loss.
The analysis of extensive spread includes all countries with 10 or more confirmed coronavirus cases. As a whole, Asia-Pacific will see about USD 57 billion in revenue loss, with the bulk made up of countries including China, Japan, South Korea, and Singapore.