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The coronavirus threatens the world tourism sector 3:18
(CNN Business) - According to the International Air Transport Association (IATA), London's global airlines will lose US $ 113 billion in sales if the coronavirus continues to spread.
The losses would be similar to those experienced by the aviation industry during the global financial crisis of 2008, IATA warned, as it dramatically increased its estimate of the damage caused by the outbreak. He said airlines could lose 19% of their businesses if the virus is not contained soon.
Only two weeks ago, IATA expected lost sales in the range of US $ 30,000 million.
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“The turn of events as a result of [the coronavirus] is almost unprecedented. In just over two months, the outlook for the industry in much of the world has worsened dramatically, ”Alexandre de Juniac, executive president of the industry group, said in a statement. "It's unclear how the virus will develop, but ... this is a crisis."
Airlines in Europe and Asia would withstand the worst part of the crisis, according to IATA. Carriers in Asia Pacific could lose sales worth US $ 58,000 million.
Three killed by coronavirus in Spain 3:06If the virus is contained soon, and economies around the world recover quickly, total industry losses could be limited to US $ 63 billion, he added.
There are already more than 94,000 confirmed cases of the new coronavirus worldwide, and almost 3,300 deaths, mainly in China. South Korea, Japan, Italy and Iran are also suffering major outbreaks.
Travel restrictions and lack of customer demand have encouraged a dozen major airlines to cancel flights to and from mainland China due to the coronavirus. Transatlantic flights, as well as capacity on routes within Europe and the United States, have also been reduced.
The British airline Flybe collapsed early Thursday when the fall in demand ended hopes of a government-backed rescue.
Investors have punished the actions of airlines in recent weeks. United Airlines shares have fallen 32% so far this year, for example, and Lufthansa shares have fallen 29% during the same period.
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