MIAMI – The International Air Transport Association (IATA) announced that its initial assessment of the impact of the Novel Coronavirus 2019 outbreak (COVID-19) shows a potential 13% full-year loss of passenger demand for carriers in the Asia-Pacific region.
IATA states that “Considering that growth for the region’s airlines was forecast to be 4.8%, the net impact will be an 8.2% full-year contraction compared to 2019 demand levels.”
“In this scenario, that would translate into a $27.8 billion revenue loss in 2020 for carriers in the Asia-Pacific region—the bulk of which would be borne by carriers registered in China, with $12.8 billion lost in the China domestic market alone,” concluded the international association.
In a report by the Economic Times, it is estimated that carriers outside Asia-Pacific will have a revenue loss of $1.5 billion, bringing total global lost revenue to $29.3 billion and representing a 4.7% hit to global demand.
WHO advises against travel restrictions
According to its website, IATA closely monitors developments related to the Coronavirus outbreak in Wuhan (China), actively engaging with the World Health Organization (WHO) Secretariat, ICAO and the US Centers for Disease Control, the first of which advises against the application of any travel or trade restrictions on China.