IATA warns airlines stand to lose US $29.3bn of revenue due to coronavirus outbreak

The global airline industry body has warned Airlines stand to lose  US $29.3bn of revenue this year due to the coronavirus outbreak.

The International Air Transport Association  predicts demand for air travel will fall for the first time in more than a decade.

Airlines in China and other parts of the Asia-Pacific region are expected to take the vast majority of the impact.

It comes as carriers around the world have been forced to reduce flights.

IATA has forecasted, in total, airlines in the Asia-Pacific region are set to see a US $27.8bn revenue loss in 2020, while those outside Asia are expected to lose US $1.5bn in revenue,

Of that figure, IATA predicts that carriers in China are set to lose revenue of US $12.8bn in their home market alone.

In a statement Alexandre de Juniac, IATA's director-general said: "Airlines are making difficult decisions to cut capacity and in some cases routes. This will be a very tough year for airlines.

However, IATA cautioned it is too early to predict what this expected revenue loss will mean for airline's profitability this year.

IATA said it had based its estimates on the slump in demand that was seen during the Sars (severe acute respiratory syndrome) outbreak in 2003. That was characterised by a six-month period that saw a sharp fall in demand followed by an equally quick recovery.