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Coronavirus will cost airlines $ 30 billion

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Warren Buffett on coronavirus and the airline industry: ‘The world changed for airlines’ Description video: Berkshire Hathaway Chairman and CEO Warren Buffett discusses how the coronavirus pandemic devastated the airline industry.\n#Buffett #WarrenBuffett #coronavirus\nSubscribe to Yahoo Finance: https://yhoo.it/2fGu5Bb\r\n\r\nAbout Yahoo Finance: \r\nAt […]

Warren Buffett on coronavirus and the airline industry: ‘The world changed for airlines’

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Coronavirus will cost airlines $ 30 billion

For the first time in 10 years, the global aviation business faces huge financial losses due to the new outbreak of coronavirus.

Coronavirus will cost airlines $ 30 billion

The International Air Transport Administration (IATA) has warned that the impact epidemics on demand could cost airlines serious economic problems. Asian carriers will be hit hard. 

In total, airlines in the Asia Pacific region are expected to see a loss of $ 27.8 billion in 2020. The rest of the world in total will lose about 1.5 billion in revenue, IATA predicts.

The outbreak is also likely to cut global traffic by 4.7%, devaluing IATA’s earlier growth forecast and marking the first overall decline in consumer demand since the 2008-2009 global financial crisis..

Coronavirus has killed more than 2,200 people worldwide, most of whom died in mainland China. The total number of infected is over 76,000.

Amid the epidemic, dozens of airlines have canceled or reduced flights to China. Beijing also placed more 780 million people under travel restrictions in an attempt to contain the spread of the virus, and suspended all domestic and international travel packages.

IATA forecast suggests outbreak will not spread outside China.

«If the virus spreads more widely to the Asia-Pacific markets, the impact on airlines will be even greater», – said the representative of the department.

Some market participants have already felt the effects of the epidemic.

Qantas Airlines said the virus could deprive the company of up to $ 100 million in pre-tax profits from the second half of the fiscal year. Air France-KLM also said Thursday the virus could cut its profits by as much as $ 216 million between February and April.