As the novel coronavirus (Covid-19) continues to spread throughout the world, the International Air Transport Association (Iata) has warned that the disease could possibly cost the industry an unprecedented $113 billion.
In a statement on Thursday, Iata director-general, Alexandre de Juniac, said the past two months had had a severe impact on air passenger travel, with the industry likely to take at least a $63 billion hit.
“In little over two months, the industry’s prospects in much of the world have taken a dramatic turn for the worse. It is unclear how the virus will develop, but whether we see the impact contained to a few markets and a $63 billion revenue loss, or a broader impact leading to a $113-billion loss of revenue, this is a crisis,” he said.
The association is yet to release information on the impact on cargo operations, however, according to De Juniac, the majority of the world’s major airlines have already started suspending flights and cutting capacity to mitigate the spread.
“Airlines are doing their best to stay afloat as they perform the vital task of linking the world’s economies. As governments look to stimulus measures, the airline industry will need consideration for relief on taxes, charges and slot allocation. These are extraordinary times,” De Juniac said.
The virus has now spread to over 80 countries, including South Africa, since the start of the outbreak late last year. – Bjorn Vorster
