In a recent statement, the Montreal-based International Civil Aviation Organization (ICAO) warned that the coronavirus, which has so far infected 64,000 people worldwide and killed at least 1,380, would have a greater impact on the aviation industry than the 2003 SARS epidemic.
ICAO reports that while 50 airlines have significantly reduced flights, another 70 have completely canceled all international flights to China, resulting in an 80% reduction in international airline capacity for passengers entering and leaving China. as well as a 40% landing capacity from Chinese airlines.
The $ 4 billion to $ 5 billion in economic damage is estimated to be caused by an overall reduction in passenger capacity on the 40%, nearly 20 million fewer passengers than the airlines had anticipated.
According to similar findings by the OAG, the coronavirus has resulted in an unprecedented drop in international air traffic in recent weeks, with two-thirds of international flights being canceled. Of all the countries facing the biggest drop in air travel, Japan has been hit the hardest, losing 16% of its total international flight capacity in recent weeks, according to the OAG.
ICAO forecast for the first quarter of 2020 shows that Japan could lose $ 1.29 billion in tourism revenues due to the decline of Chinese travelers, while another neighboring country affected is Thailand, which may lose up to $ 1.15 billion.
While global airlines have been hit hard by the coronavirus, the OAG says the country could return to normal six months after the emergency point, citing previous epidemics such as SARS and Ebola as precedents.
Investors around the world continue to worry about the impact of the rapidly spreading coronavirus outbreak on China and the world economy. Experts predict that global economic growth in 2020 will decrease by 0.2% - 0.3%, while the growth of the first quarter in the US may be not m 0.2% - 0.4%. Estimates for China's first quarter GDP now range from 0% to about 5% - from the projected annual growth rate of 5.9%.
Adapted from: Star Business