IATA Warns Airlines Could Lose Billions in Revenue

Image: PHOTO: Stressed woman at an airport. (photo via iStock / Getty Images Plus / kieferpix)
Image: PHOTO: Stressed woman at an airport. (photo via iStock / Getty Images Plus / kieferpix)
Donald Wood
by Donald Wood
Last updated: 10:02 AM ET, Thu March 5, 2020

An aviation group revealed Thursday airlines could lose as much as $113 billion in revenue as a result of the ongoing coronavirus outbreak.

According to the International Air Transport Association (IATA), the aviation industry could lose around $63 billion if the viral infection is contained in the countries currently experiencing confirmed cases.

If the coronavirus continues to spread worldwide, though, IATA officials said the total could rise as high as $113 billion, which translates to between 11-19 percent of worldwide passenger revenue loss.

IATA Chief Economist Brian Pearce said at a media briefing in Singapore the viral outbreak could have an impact on the travel industry similar to the one experienced in 2009 during the global financial crisis.

The IATA initially said the coronavirus outbreak would cost carriers $29.3 billion in revenue.

On Wednesday, United States President Donald Trump made his most impactful statement so far to reassure travelers shaken by the coronavirus outbreak, confirming to passengers it's still safe to fly.

"Where these people are flying, it's safe to fly and (in) large portions of the world it's very safe to fly," Trump said. "Yes, it's safe."

While President Trump said it is safe to fly to approved destinations, airlines such as American, Delta and United cut their weekly flight schedules and have started waiving change fees for concerned customers.


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