Airlines

Airlines could lose up to $113 billion in passenger revenue due to coronavirus, IATA says

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Key Points
  • The $113 billion estimate is for a scenario with a broader spreading of the disease.
  • This fall would translate to 11%-19% of worldwide passenger revenue loss.
El Al Israel Airlines departure counter is pictured empty after it cancelled flights to Italy at Ben Gurion International Airport, near Tel Aviv, on February 27, 2020.
Jack Guez | AFP | Getty Images

Airlines could lose $63 billion to $113 billion in revenue for passenger traffic globally in 2020, depending on how the coronavirus spreads, International Air Transport Association (IATA) said on Thursday.

The last time the industry faced a revenue shock of this magnitude was in 2009 during the global financial crisis, IATA Chief Economist Brian Pearce said at a media briefing in Singapore.

The $63 billion figure is for a scenario where the disease is contained in current markets with over 100 cases as of March 2, following a v-shaped recovery, IATA said.

The $113 billion estimate is for a scenario with a broader spreading of the disease.

This fall would translate to 11%-19% of worldwide passenger revenue loss.

IATA on Feb. 20 estimated the outbreak would cost carriers $29.3 billion in revenue, if the outbreak was largely confined to markets associated with China.