Coronavirus outbreak could result in $5 billion downfall in airline revenues: ICAO

The International Civil Aviation Organisation on February 13 said that the coronavirus outbreak could result in a $4-5 billion drop in the world aviation revenue. According to reports, the United Nations agency stated that around 70 airlines had cancelled all flights to and from China. It also stated that 50 other airlines have cut down on their China operations to curb the spread of the virus. The current death toll in coronavirus related cases stands at 1383 and the number of current cases is 64,434.

A potential loss of $5 billion

According to reports, preliminary reports showcased that the cancellations and slashing down of operations resulted in a downfall of approximately 20 million passengers as compared to estimates for the first quarter of 2020. In addition to this, the agency stated that this could lead to a potential loss of $5 billion.

According to reports, the International Civil Aviation Organisation(ICAO) in a statement said that before the outbreak, different airlines had planned to increase it flight rate by a total of nine per cent of all international flights to and from China for the first quarter of 2020.

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Japan is the worst affected

Japan has reportedly been hit the hardest by downfall in Chinese visitors in the first quarter. According to reports, the country's tourism industry could lose $1.29 billion whereas Thailand's tourism industry could also be hit with a loss of $1.15 billion. Japan’s Health Ministry confirmed the first death from novel coronavirus, COVID-19, and the victim was not part of the Diamond Princess cruise ship quarantined off the Japanese coast. Health Minister Katsunobu Kato, in a news conference, reportedly said that the Japanese woman was in her 80s and a resident of Kanagawa Prefecture, south of Tokyo.

The World Health Organisation (WHO) chief has called coronavirus outbreak ‘a very grave threat’ for the rest of the world even if 99 per cent of the cases remain restricted to mainland China. Speaking at the global research and innovation forum in Geneva, WHO Director-General Tedros Adhanom Ghebreyesus said that the coronavirus outbreak is a test of political, financial, and scientific solidarity.

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