A passenger wears surgical mask inside an airplane at the...
Amid the coronavirus spread, several countries cancelled flights to and from China SOPA IMAGES/LIGHTROCKET VIA GETTY IMAGES

Topline: Cancelled flights to mainland China and reduced demand for travel because of the coronavirus could wipe $30 billion from the revenues of global airlines, according to International Air Transport Association.

• Overall, the impact of lower global demand for air travel because of the coronavirus could cost airlines $29.3 billion this year-a fall of 4.7%.
• Airlines operating in the Asia-Pacific region face the biggest hit with a $27.8 billion drop in revenue, while international carriers could lose $1.5 billion in revenue.
• This marks a major hit for global air travel, which IATA said was expected to grow 4.1% this year, but is now actually set to contract slightly thanks to local and international carriers cutting back flights because of lower demand.
• This decline would mark the first fall in demand since the global financial crisis in 2009, the body said.

The impact of the Coronavirus on airlines has dwarfed the 2002-2003 SARS outbreak that caused a $7 billion drop in revenues.

Crucial comment: "Airlines and governments are in this together. We have a public health emergency, and we must try everything to keep it from becoming an economic crisis," said IATA CEO Alexandre de Juniac.

Key background: Dozens of major airlines have cancelled or cut back flights to mainland China amid travel lockdowns, and international efforts to curb the spread of the pneumonia-like virus. Yesterday, Australian flagship airline Qantas warned its profits could fall $99 million this year, after it cut 16% of its flights between Australia and Asia until May. Franco-Dutch carrier Air France-KLM warned its earnings could fall $215 million between February and April, because of a fall in demand. The airline has cut its routes to Shanghai and Beijing until mid March. Meanwhile, China's government is reportedly drawing up a rescue plan for leisure and travel conglomerate HNA Group, which had faced financial trouble that predates coronavirus. The group's flagship Hainan Airlines could be sold off as part of the rescue deal.

https://www.forbes.com/sites/isabeltogoh/2020/02/21/coronavirus-outbreak-could-cost-airlines-30-billion/#214a56a1237