Coronavirus spread caused heavy losses to air travel business


Air travel business to lose $113 billion 


According to the new analysis of International Air Transport Association (IATA) - the global financial impact of COVID-19 (Coronavirus) could be up to $113 billion. The people are traveling less as virus spreading to other countries and regions. The airlines continue to lose passenger business as the result of COVID-19 spread.
In its previous analysis last month-IATA predicted the loss of $29.3 billion based on the assumption that the impact of COVID-19 would be largely confined to markets associated with China. Since that time, the virus has spread to over 80 countries and forward bookings have been severely impacted on routes beyond China.
IATA has also revealed that shares of airlines have dropped up to 25% since the outbreak of COVID-19 begun. The travel business experts are comparing this situation with the beginning of world financial crises in 2008. 
     
The COVID-19 is also impacting the Gulf airlines.  The Gulf airlines could lose up to$4.9 billion as passenger traffic continues to drop. So far Gulf airlines lost 23% of passengers due to virus spread. Mostly Asian airlines are suffering heavy losses as their passenger numbers have slumped.
The National airlines of Pakistan and India are expected to make even bigger losses. Air India and Pakistan International Airlines (PIA) were both struggling to overcome the heavy losses. The new restrictions imposed by many countries on air travel will cause more losses for airlines and related businesses.   
The IATA has discussed two possible scenarios. The first includes markets with more than 100 confirmed COVID-19 cases experiencing a sharp downturn followed by a V-shaped recovery profile resulting in a loss of $63 billion.
Scenario 2 applies a similar methodology but to all markets that currently have 10 or more confirmed COVID-19 cases which could result in a loss in worldwide passenger revenues of $113 billion.
                                            Rukhsana Manzoor deputy editor

No comments

Powered by Blogger.