Coronavirus outbreak could cost airlines $113B

SINGAPORE (AP) — The International Air Transport Association says the virus outbreak that began in China could cost airlines as much as $113 billion in lost revenue due to the collapse of air travel.

Representatives of the airline industry group said Thursday after a working meeting in Singapore that the industry urgently needs help from governments in waiving some requirements, taxes and fees to alleviate the burden on struggling carriers.

“The industry remains very fragile,” Brian Pearce, the IATA’s chief economist, told reporters.

“There are lots of airlines that have got relatively narrow profit margins and lots of debt and this could send some into a very difficult situation.”

The British regional airline Flybe stopped flying as of Thursday, done in by longstanding financial troubles and the impact of the worldwide blow to travel from the outbreak.

The IATA’s estimate reflects a scenario involving a 19% loss in worldwide passenger revenues with extensive spread of the virus in markets that now have 10 or more confirmed cases.

The countries account for 80% of airline revenues, Pearce said.

The biggest losses would be in the Asia-Pacific region, including China, which has by far the most cases of the virus.

An earlier estimate just two weeks ago put the potential cost of the downturn in travel at less than $30 billion.

That was before the number of cases outside China skyrocketed, taking the total to nearly 100,000.

So far, more than 3,200 people have died of COVID-19, the disease caused by the new coronavirus.

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