The novel coronavirus outbreak has impacted the economy worldwide but the airline industry has faced the worst hit. After the epidemic broke out, government agencies have requested travelers to minimize tourism while businesses have also cut down on their trips – giving airlines a significant number of cancellations. In fact, many airlines forced to fly their planes half-empty since many flyers are not comfortable traveling during the epidemic.
The International Air Transport Association (IATA) also anticipates that the losses incurred by airlines are much higher than originally estimated. The IATA represents some 290 airlines compromising 82 % of global air traffic and predict that the airlines can suffer from 11% loss in passenger revenue this year – equating to $63 billion.
Previously, health authorities assumed that the impact would be greatly confined to the markets associated with China. However, the virus is spreading at a phenomenal speed and the IATA says that the airline industry may have to incur losses of up to $113 billion in 2020 alone.
Taking into account the dramatic turn for the worse, IATA urges the government authorities to step in and offer some relief on taxes, charges, and slot allocation for the airline industry. In these extraordinary times, we all need the help we can get!
Infographic by: www.statista.com