An extensive worldwide spread of the COVID-19 virus could result in a 19% loss in passenger revenues, According to IATA that would equate to $113 billion – on a scale equivalent to what the airline industry experienced in the 2008 global financial crisis.
“In a little over two months the industry’s prospects have taken a dramatic turn for the worse,” stated IATA director general Alexandre de Juniac. “This is a crisis and governments must take note,” he stressed.
The DG added, “Many airlines are cutting capacity and taking emergency measures to stay afloat as they perform the vital task of linking the world’s economies.”
And he declared only a day after the EU refused to ease slot allocation rules at capacity-constrained airports, “As governments look to stimulus measures the airline industry will need consideration for relief on taxes, charges and slot allocation because these are extraordinary times.”
IATA figures that a full-blown crisis would likely cause a 10% drop in North American passenger numbers resulting in a $21 billion negative impact on revenues.