The International Air Transport Association (IATA), in its updated assessment on the financial impact of the COVID-19 crisis, has painted a bleak picture of the outbreak’s impact on the global air transport industry, noting that already airline share prices have fallen by 25 per cent.

The coronavirus, which has now spread to more than 80 countries, has severely affected bookings and the wider global travel industry.

The association in previous estimates, following the massive China outbreak, said that the global air transport industry would lose US$29.3 billion in revenues this year. Since then, more recent estimates have predicted even greater revenue losses.

“The turn of events as a result of COVID-19 is almost without precedent. In little over two months, the industry’s prospects in much of the world have taken a dramatic turn for the worse. It is unclear how the virus will develop but whether we see the impact contained to a few markets and a $63-billion revenue loss, or a broader impact leading to a $113 billion loss of revenue, this is a crisis,” a release from the association said.

Alexandre de Juniac, IATA’s director general and chief executive officer (CEO), said that the global crisis has presented the world with what he deems “some extraordinary times”.

“Many airlines are cutting capacity and taking emergency measures to reduce costs. Governments must take note. Airlines are doing their best to stay afloat as they perform the vital task of linking the world’s economies. As governments look to stimulus measures, the airline industry will need consideration for relief on taxes, charges, and slot allocation,” he added.

The international airline body noted that financial markets are already feeling the effects from a fallout in the aviation sector.

“Airline share prices have fallen nearly 25 per cent since the outbreak began— some 21 percentage points greater than the decline that occurred at a similar point during the Severe Acute Respiratory Syndrome (SARS) crisis of 2003. To a large extent, this fall already prices in a shock to industry revenues much greater than our previous analysis,” the release also said.

Further outlining that globally, the fall in demand will translate to an 11 per cent worldwide passenger revenue loss equating US$63 billion.

“Africa and Latin America/Caribbean regions are not explicitly included in this market-based analysis, because there are currently no countries in either region with at least 10 COVID-19 cases,” they also noted.