Coronavirus Could Cause Airline Revenue Losses As High As $113 Billion, According To IATA

Coronavirus Could Cause Airline Revenue Losses As High As $113 Billion, According To IATA

The International Air Transport Association (IATA) has updated its economic impact estimates for the spread of the novel coronavirus (COVID-19) adjusting potential lost airline revenues to as high as $113 billion.. IATA's new limited spread scenario still sees a decline of 23% in passenger numbers in China, 12% decline in Japan, 10% in Singapore, 14% in South Korea, and an 11% decline in Asia Pacific excluding these countries.. An extensive spread scenario, including countries with at least 10 confirmed cases on March 2, extends the drop in passenger numbers to 23% in Australia, China, Japan, Malaysia, Singapore, South Korea, Thailand and Vietnam; APAC markets not excluding these countries would also drop by 9%.. The drop in oil prices (-$13/barrel Brent) since the beginning of the year may help to offset some of the lost revenue, reducing the combined fuel expenditures for airlines by as much as $28 billion.. "Many airlines are cutting capacity and taking emergency measures to reduce costs.. I worked in aviation from 1994-2010 before turning my experience to writing about airlines and airports for leading industry and consumer publications in 2013.. I've spent months in the hangars of airlines and aircraft manufacturers, dressed aircraft seats by hand,