IATA warns of $27.8 billion revenue loss in 2020 for carriers in APAC

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Feb 21, 2020: The Novel Coronavirus 2019 outbreak (COVID-19) showed a potential 13 percent full-year loss of passenger demand for carriers in the Asia-Pacific region, revealed The International Air Transport Association (IATA) in its initial assessment of the impact of the epidemic.

Considering that growth for the region’s airlines was forecast to be 4.8 percent, the net impact will be an 8.2 percent 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.

In the same scenario, carriers outside Asia-Pacific are forecast to bear a revenue loss of $1.5 billion, assuming the loss of demand is limited to markets linked to China. This would bring total global lost revenue to $29.3 billion (5 percent lower passenger revenues compared to what IATA forecast in December) and represent a 4.7 percent hit to global demand. In December, IATA forecast global RPK growth of 4.1 percent, so this loss would more than eliminate expected growth this year, resulting in a 0.6 percent global contraction in passenger demand for 2020.

Read more at stattime.com

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