Singapore/AP (WBAP/KIF) – With more and more people canceling travel plans over coronavirus concerns, airlines could lose $113 billion dollars, according an airline industry group.
That’s a monumental increase from an estimate two weeks ago when the International Air Transport Association said losses would be about $30 billion.
The decline in bookings has led to “very serious cash flow shock,” according to the IATA’s chief economist Brian Pearce, at the groups meeting in Singapore this week.
The agency says the industry is in urgent need of help from governments to waive some requirements and fees imposed on airlines.
One thing that might help is lower energy prices, something OPEC is attempting to avert. The oil-producing countries of OPEC are considering whether to slash output Thursday to halt that slide. Crude prices have fallen 25% since the start of the year on the risk of slowed global growth. That potential risk can be seen in financial markets Thursday. Dow futures are down almost 500 points, but that could change. Markets are swinging wildly.
