Photo: Andrej Safaric / shutterstock.comReading Time: < 1 minute
On 5 March, 2020, the International Air Transport Association (IATA) projected that the crisis caused by the coronavirus will cost the industry a $113 billion revenue loss. On 24 March, 2020, the updated analysis revealed new numbers: $252 billion hit or 44% below 2019’s figure.
The initial forecast was made in light of some travel restriction that did not largely affect the international travel market.
The revised estimations, therefore, have been made considering only three-month travel bans, followed by a gradual economic recovery later this year.
If the spread of the coronavirus is not contained in three months, the figures will be even more grave and a large number of airlines will simply not recover.
“Within a matter of a few weeks, our previous worst case scenario is looking better than our latest estimates. But without immediate government relief measures, there will not be an industry left standing. Airlines need $200 billion in liquidity support simply to make it through”, said Alexandre de Juniac, IATA’s Director General and CEO.