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Coronavirus will cost airlines $ 30 billion

Summary

How can the aviation industry weather the coronavirus storm? | Inside Story Description video: It’s described as the biggest crisis in aviation history.\nWith borders closed to limit the spread of the coronavirus, airlines are forced to ground their fleets, costing […]

How can the aviation industry weather the coronavirus storm? | Inside Story

Description video:
It’s described as the biggest crisis in aviation history.\nWith borders closed to limit the spread of the coronavirus, airlines are forced to ground their fleets, costing them billions in lost revenue every month.\nSome airlines are hoping to resume flights and restore links as countries begin to ease their lockdowns.\nBut many places, such as the UK, are making it mandatory for travellers to spend two weeks in quarantine when they land.\nBritish Airways, Easyjet and Ryanair are challenging the government ruling in court.\nThe International Air Transport Association says 2020 will be the worst year on record, with airlines set to lose 84 billion dollars.\nSo what does the airline industry need to recover from the pandemic?\n\nPresenter: Imran Khan\n\nGuests:\nRaphael Kuuchi – Special Envoy to Africa on Aero-political Affairs at the International Air Transport Association\nBenet J Wilson – Travel and aviation writer\nDiego Olmedo – International Aviation Law expert\n\n- Subscribe to our channel: http://aje.io/AJSubscribe \n- Follow us on Twitter: https://twitter.com/AJEnglish \n- Find us on Facebook: https://www.facebook.com/aljazeera \n- Check our website: https://www.aljazeera.com/\n\n#AlJazeeraEnglish #InsideStory #Aviation

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.

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.

Coronavirus will cost airlines $ 30 billion

«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.