By: Air Traveller PH Staff
The International Air Transport Association (IATA) now estimates that the Coronavirus (CoviD-19) crisis will reduce the global airline industry passenger revenue by $252 billion, more than double its estimate of $63 billion to $113 billion as earlier estimated. Almost all airlines have reduced their capacity by more than 90% at least, prompting even some to completely suspend all passenger flights.
The drop in revenue almost equates to 44% from 2019.
IATA director general expresses concern over the situation calling this the "deepest crisis" the airline industry ever faced. He said that governments should act fast with financial relief because if not, almost half of the world's airlines may go bankrupt in the next few weeks.
Earlier in March, the trade association estimated that the impact of the CoviD-19 pandemic may cost airlines $115 billion.
IATA's revised estimates come after more airlines have grounded more flights amid government imposed travel restrictions on their own countries and plummeting demand for air travel.
Beginning March 26, all Philippine-based carriers will temporarily no longer be operating passenger flights after Philippine Airlines (PAL) announced that it will suspend all remaining international flights starting March 26. Cebu Pacific has completely suspended all flights since March 19.