The airline industry is projected to loose $113 billion
The airline industry is projected to lose $113 billion in loss revenue due to #Coronavirus impact globally. Looking at the impacts of #Covid19 in airline industry:
In Maldives: Maldivian have stopped all flights to China via Thailand and flights to India which were the international routes for their airbus fleet. Domestic operations has also been reduced.
Manta Air’s parent company Universal announced closure of their resorts for the next 3 months. Flights to Kooddoo Airport has been suspended while flights to Dhaalu Airport and Dharavandhoo airport have been reduced. Villa Air Flyme’s parent company Villa group announced closure of their resorts apart from one. Flights has been been reduced as Flyme caters for almost all passenger arrivals to resorts owned by Villa Group. Trans Maldivian Airways majority of all passengers are tourists arriving for holiday to resorts. The airline will be heavily impacted due significant reduction in tourist arrivals.
Looking at the impact of the virus globally:
Flybe airline with a fleet of 63 aircraft with 56 destinations and Compass Airlines with a fleet of 32 aircraft with 50 destinations both have ceased operations. Lufthansa airline and Delta Air Lines are parking a total of 1,500 planes while American Airlines will park 450 aircraft. Qantas Airways is laying off close to 30,000 employees in some of the industry’s deepest cuts to date. Cathay Pacific airline said it would operate just 4 per cent of its scheduled services in April and May and its budget unit HK Express declared the suspension of flights for five weeks until the end of April. British Airways revealed that its capacity for April and May would be cut by at least 75 per cent. Ryanair plans to cut down 80% of its flights; this is an airline that typically flies 2,400 flights per day.
Last December IATA was forecasting a relatively rosy scenario, with airline revenue passenger kilometers (RPK) set to rise by 4.1% in 2020, leading to a rise in spending on air transport to $908 billion from $873 billion in 2019. Unfortunately, the internationalization of the outbreak meant that the IATA was forced to update its models on March 5 based on a "limited spread" scenario implying a $63 billion hit to passenger revenue, and an "extensive spread" scenario implying a $113 billion hit.