Coronavirus is widespread around the world leading to approx. 3350 deaths and 94,000 positive cases. Not only China but this epidemic has reached out to other countries as well which includes Japan, South Korea, Italy, Iran, and many others…The world is suffering from not only a medical emergency but an economical and financial one too due to this.
Many sectors have suffered due to the Coronavirus and bearing great loss as the export/import of the goods have stopped. The aviation industry has suffered a lot due to this as most of the airlines getting canceled these days.
International Air Transport Association said that if coronavirus continues to spread around the world then there will be a loss of about $113 billion for the Global airlines.
The aviation industry faced similar losses in the 2008 financial crisis. Many airlines saw a very bad period and faced heavy financial loss during the time of 2008 recession and this time in 2020 airlines face a $113 billion hit.
It is evident that due to the fierce virus, the number of flights has been canceled and this has impacted a lot on the sales. Numerous flights from China have been canceled due to the travel restrictions which brings a bad time for the airlines.
Alexandre de Juniac, the CEO of the IATA said that over the period of two months, the virus has spread over the world and due to that a big crisis is resulting in the aviation industry. If the virus gets stopped spreading quickly then the loss can be limited to $63 billion.
Asia and Europe’s airlines will be affecting a lot and it is estimated that Asia Pacific airlines will be facing a loss of $58 billion. Shares of the airlines are dropping down and the investors are having trouble due to this.
I hope that the virus stops getting spread more, the affected patients recover quickly and a good solution gets to find out for this dreadful virus so that the various industries including the aviation industry start growing once again. For more information, visit Financeshed.