Poll: Will COVID-19 Outbreak Have A Bigger Financial Impact On The Global Aviation Industry Than SARS?

The airline industry is generally in good shape to withstand the financial impact of the COVID-19 coronavirus, but it is yet to be seen if this outbreak will follow the same pattern as previous similar outbreaks. 

IATA chief economist Brian Pearce provided a detailed outlook for COVID-19’s potential impact on the global airline industry in a presentation Feb. 21 during the IATA Legal Symposium 2020 in New York. 

The steeper impact of COVID-19 is partly explained by the fact that the China market is three times larger than it was in 2003, when SARS emerged, so the effects of any downturn are greater. If COVID-19 infections remain mostly in China, the financial impact on airlines outside the Asia-Pacific region will be far less, Pearce said. North American airlines, for example, will likely see RPKs down by only about 1%. 

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