March 5 (UPI) -- The airline industry could lose as much as $113 billion in revenue this year due to the impact of the coronavirus disease, a global trade association said in a report Thursday.
The International Air Transport Association said in a 14-page analysis the COVID-19 outbreak will ultimately cost the industry between $63 billion, if the outbreak is contained to current markets, and $113 billion if it spreads further.
The world airline industry has already been significantly affected by the virus, as many airlines have canceled certain routes and begun waiving fees to change travel itineraries.
IATA's forecast Thursday is a four-fold increase over its outlook last month, which anticipated $29.3 billion in revenue losses related to the virus.
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Airlines are cutting capacity in reaction to what has become a major crisis for the industry, and it now needs tax relief and other financial help from governments to cope during "extraordinary times," the group said.
Flybe, Europe's largest regional airline, has collapsed into bankruptcy citing "added pressures" on the travel industry in the last few weeks. The abrupt shutdown came less than two months after the British government approved a rescue package.
U.S. airlines and other travel stocks have fallen by nearly 25 percent in recent weeks amid a number of virus-related cancellations of trade shows and conventions.
IATA CEO Alexandre de Juniac said the crisis is "almost without precedent."
"Airlines are doing their best to stay afloat as they perform the vital task of linking the world's economies," he said. "As governments look to stimulus measures, the airline industry will need consideration for relief on taxes, charges and slot allocation."
IATA's report said if the virus is contained to travel markets that have at least 100 cases, worldwide air travel demand will drop by about 11 percent and revenue will fall by around $63 billion, with the greatest losses in the most virus-prevalent places -- China, Italy, Iran and South Korea.
If the coronavirus spread expands, IATA expects a loss of about 19 percent in revenues, or $113 billion, which would be an impact comparable to the financial crisis about a decade ago.
