With widespread coronavirus outbreak in more than 85 countries around the world, the global economy has suffered a slowdown with experts predicting a possible recession if the condition worsens. Aviation industry in particular has been hit hard with airlines seeing sharp decline in the passenger demand due to the fear of infection. A number of airlines have cut down or entirely canceled flights to the countries where the outbreak of the novel COVID-19 virus has been particularly bad like China, Italy, South Korea, Iran among others.
The International Air Transport Association (IATA) has estimated that the airlines sector can see a loss of $113 billion in sales if the coronavirus outbreak continues to be more widespread. The new estimation is three times more than the initial estimation of around $29.3 billion. According to the organization, since the outbreak, airline share prices have gone down by nearly 25% but the losses would be limited to $63 billion if the infection is contained soon.
Currently, the number of cases of coronavirus infection is growing rapidly with with more than 95,000 people infected and more than 3000 deaths worldwide.