March 6, 2020: Concerns about the coronavirus are causing millions to rethink their travel plans and may cost the airline industry at least $63 billion in revenue. A report from the International Air Transport Association (IATA) also estimated that if the virus spreads more broadly, the airline industry could lose as much as $113 billion.[1]
Those figures represent an 11% to 19% decline of total airline revenue.[1]
Some of the losses will be offset because oil prices have fallen since the coronavirus outbreak. The cost of fuel is a major airline expense. Still, the IATA report notes that “airline share prices have fallen nearly 25% since the outbreak began.” That’s a far bigger impact than "the decline that occurred at a similar point during the SARS crisis of 2003."[1]
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