Corona hits global aviation industry: $ 252 billion revenue loss expected – worldwide

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International Air Transport Authority (IATA) estimates on Tuesday that the loss of revenue by airlines worldwide due to traffic restrictions imposed by the Corona epidemic could amount to $ 252 billion this year.

A month ago, the ITA estimated that the corona eruption would result To $ 29 billion in revenue loss To the airlines, and less than three weeks ago, it updated its outlook Up to $ 113 billion in revenue loss.

“On March 5, we estimated that the pessimistic scenario would be a $ 113 billion loss of revenue. The outlook was based on the widespread expansion of the Corona, but was not based on the current sweeping ban on travel,” said ITA Secretary-General Alexander de Z. And Newak, in a telephone briefing for reporters. “If the current situation lasts for three months, we expect a 38% fall in global demand and a loss of $ 252 billion in passenger revenue – a 44% fall from revenue in 2019,” he added.

De Juniac estimated that some airlines in the world could go bankrupt if governments did not help the industry. “The liquidity crisis is coming at full speed. Revenues have fallen off the cliff and no spending cuts could save the situation if we didn’t put money in,” he said.

De Juniac added: “Without financial assistance, airlines will collapse. Airlines are trying desperately to survive the toughest times imaginable. We have the people and the experience to overcome it, but to be completely honest, we don’t have the money. We need governments to help us through mediation to the point where we can start to recover. “

According to data released last week Research firm OAG Aviation Worldwide, outbreak of the Corona virus has forced airlines to reduce world air traffic by 15%, ground thousands of aircraft and lay off workers. The worst casualties in terms of flight traffic are Macau, Hong Kong and Italy.

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