Aviation Association Expects Billions in Losses Due to Covid 19 Epidemic

The International Aviation Association (ICAO) expects the coronavirus outbreak in China to cut revenue by up to $ 5 billion for airlines worldwide. 70 airlines had stopped all flights to and from China due to the new corona virus, the UN organization said on Thursday. 50 other airlines reduced their air traffic to and from China.

For the first quarter of 2020, the reduction in air traffic means almost 20 million fewer passengers on China flights than expected, the ICAO said. That number equates to sales of around $ 5 billion. Impact greater than SarsThe impact on the aviation industry from the current coronavirus epidemic is expected to be greater than that of the Sars epidemic in 2002 and 2003. Another reason is the number of flight cancellations that the frequency of international air traffic to and from China has doubled in the past 17 years.

Before the outbreak, the airlines had planned to increase their capacities for international flights to and from China by nine percent in the first quarter of 2020 compared to the previous year, the organization said. In fact, capacity was cut by 80 percent for non-Chinese airlines and 40 percent for Chinese airlines. According to ICAO, Japan is the most affected by the drop in sales: For the country, the Covid 19 epidemic means losses in tourism. Sector of up to $ 1.29 billion. In Thailand, the losses could be up to $ 1.15 billion.

In China there are now more than 64,000 coronavirus cases, around 1,400 people died. Outside of China, 600 infections have been confirmed in about 30 countries.
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