Coronavirus outbreak: Airlines could lose $30b revenue this year, says IATA

Abu Dhabi - Regional carriers will see their revenue dip by 3 per cent, but this figure can go up to 50 per cent.

Airlines could lose $30 billion in revenue this year due to the Covid-19 coronavirus outbreak, according to the International Air Transport Association (IATA).

The global death toll has exceeded 3,000 on Monday, and nearly 90,000 confirmed infections have been reported. Over 45,000 patients have also been treated.

With several countries suspending or curtailing flights to and from affected countries, the aviation industry has been severely hit.

Muhammad Ali Albakri, regional vice president, Africa and the Middle East, said airlines in China and other parts of the Asia Pacific region have faced maximum impact, and are likely to see a revenue loss of $27.8 billion.

Regional carriers will see their revenue dip by 3 per cent, but this figure can go up to 50 per cent if the outbreak continues and travel restrictions are expanded.

"We are seeing a drop in ticket sales in the Middle East and across the world. We are monitoring the situation and hope there is a reversal of the situation," he said, adding that the aviation industry was resilient and would bounce back from the situation, as it has done before.

On Emirates asking staff to go on leave, he said: "It's a demonstration of how hard industry is hit. Airline margin are so thin that such situation hit them badly."

"Airlines will have to reassess entire plans for 2020. This has impacted a major part of world."