Monday, 30 March, 2020, 4:12 PM
latest 4 killed as train rams auto-rickshaw in Rangpur       Bangladeshis living in Qatar illegally can take free treatment       Another one infected with virus; 4 more recovered      
Home Front Page

Coronavirus: Global airlines sector stand to lose US$ 29.3b

Published : Saturday, 22 February, 2020 at 12:00 AM  Count : 354

The airlines sector of the world stand to lose around US$ 29.3bn (£23.7bn) of revenue this year due to the coronavirus outbreak, the apex body of global airline industry has warned on Friday.
Quoting the International Air Transport Association (IATA) prediction, an international news agency BBC.com on Friday published a report in this regards.
It claimed that the demand for air travel will fall for the first time in more than a decade.
Airlines in China and other parts of the Asia Pacific region including Bangladesh and India are
expected to take the vast majority of the impact. It comes as carriers around the world have been forced to reduce flights.
In total, the airlines in the Asia Pacific region are set to see a $27.8bn revenue loss in 2020, while those outside Asia are expected to lose $1.5bn in revenue, IATA has forecast.
Of that figure, IATA predicts that carriers in China are set to lose revenue of $12.8bn in their home market alone.
"Airlines are making difficult decisions to cut capacity and in some cases routes," said IATA's Director-General Alexandre de Juniac. This will be a very tough year for airlines," he said.
However, IATA cautioned it was too early to predict what this expected revenue loss would mean for airlines' profitability this year.
IATA said it had based its estimates on the slump in demand that was seen during the Sars (severe acute respiratory syndrome) outbreak in 2003. That was characterised by a six-month period that saw a sharp fall in demand followed by an equally quick recovery.
That year Sars was responsible for the 5.1% fall in demand for airlines in the Asia-Pacific region.
The forecast also assumes that the virus remains centred on China, but IATA warned the effect could be far worse if the infection spreads further in the region.
IATA has previously forecast that the Asia Pacific region would be the biggest driver of air travel demand between 2015 and 2035, with four of the five fastest-growing markets in terms of passengers being from Asia.
On Thursday, two major airline groups warned of a severe financial impact as a result of the coronavirus hitting demand for travel in Asia.
Australia's Qantas said the outbreak would cost it up to 150m Australian dollars ($99m; £76m), while European carrier Air-France KLM put the cost at up to €200m ($213m; £168m) for the period between February and April.










« PreviousNext »



Latest News
Most Read News
Editor : Iqbal Sobhan Chowdhury
Published by the Editor on behalf of the Observer Ltd. from Globe Printers, 24/A, New Eskaton Road, Ramna, Dhaka.
Editorial, News and Commercial Offices : Aziz Bhaban (2nd floor), 93, Motijheel C/A, Dhaka-1000. Phone :9586651-58. Online: 9513959, Advertisement: 9513663
E-mail: [email protected], [email protected], [email protected], [email protected],   [ABOUT US]     [CONTACT US]   [AD RATE]   Developed & Maintenance by i2soft