Aviation Industry to Lose Up to Rs 35,000 Cr due to Coronavirus: Report

New Delhi, February 15, 2020:

The International Civil Aviation Organization (ICAO) has said that the cost of the coronavirus to worldwide airline revenue could top $5bn (or Rs 3,57,63,45,00,000).

The tourism impacts of reduced Chinese travel is predicted to hit markets in Japan and Thailand the hardest, with over $1bn in revenue estimated to be at risk in both countries. In the meantime, Chinese airlines are rushing to refinance their fleets in order to secure liquidity for their businesses during this difficult time.

The deadly coronavirus or COVID-19 is hurting the aviation industry hard, with many flights being cancelled due to the outbreak of the deadly virus.

While foreign airlines have stopped flying to China, Chinese airlines have been forced to slash services as demand for flights has plummeted.

In a statement released on February 13, the ICAO stated,“Prior to the outbreak, airlines had planned to increase capacity by 9% on international routes to/from China for the first quarter of 2020 compared to 2019.

“ICAO’s preliminary estimates indicate that the first quarter of 2020 has instead seen an overall reduction ranging from 39% to 41% of passenger capacity, or a reduction of 16.4 to 19.6 million passengers compared to what airlines had projected. This equates to a potential reduction of USD 4 to 5 billion in gross operating revenues for airlines worldwide.”

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