Coronavirus: outbreak has so far battered air travel in Hong Kong and abroad – but worse is predicted
- Analysts foresee cuts to capacity of up to 80 per cent, upwards of US$100 billion lost, and airlines at risk of going out of business under the squeeze of travel restrictions
- Some call for governments to help the strategically crucial sector, with cash handouts or other relief measures
The global aviation industry – already battered by coronavirus disruption – should brace for a devastating further slump in business this year, analysts have said, with cuts to capacity of up to 80 per cent and airlines, including in Hong Kong, at risk of closure.
And given the sector’s economic importance, analysts said governments would have to offer handouts and various relief measures to struggling airlines.
The grim outlook comes as countries around the world tighten travel restrictions, with border closures and various quarantine measures, in an attempt to contain an epidemic that has swept across Asia, Europe and America and threatens to accelerate the global economic slowdown.
Pascal Martin, partner at OC&C Strategy Consultants, estimated that business would plummet by up to 80 per cent for some carriers during the affected period. In China alone, according to aviation analyst Cirium, more than 500,000 out of 1.11 million scheduled flights were cancelled from January 1 to March 10, accounting for 45 per cent.