Global Airline Industry Faces $250 Billion Coronavirus Hit

The global airline industry faces losing more than $250bn in revenues, according to the latest forecast from a trade body that has been forced to slash its outlook again as coronavirus spreads. The hit would amount to a more than 40 per cent fall in revenues from 2019, Iata, the industry trade body warned on Tuesday, the Financial Times reported. It is up from a prediction of $113bn made a few days ago and an initial forecast of $30bn at the start of the crisis. Brian Pearce, Iata’s chief economist, said the sharp increase in the projected blow stemmed from the aggressive extension of travel restrictions in recent days. The bans now cover roughly 98 per cent of passenger revenues. Capacity was expected to be 90 per cent down in Europe alone, and a number of airlines in the region are vulnerable to collapse. The warning comes as Ryanair, Europe’s biggest low-cost airline, grounded its entire fleet and as governments around the world consider rescue packages for the aviation industry. The UK is expected to unveil its package soon. Read more