Connect with us

Hi, what are you looking for?

Capital Business
Capital Business
KQ posted a net loss of Sh12.98 billion for the year which ended December 2019, compared to the Sh7.558 billion loss posted a year earlier/FILE

Kenya

Virus could mean Sh502.8bn in airline losses: UN agency

Preliminary estimates show this has meant a reduction of nearly 20 million passengers compared to expectations for the first quarter of 2020/FILE

MONTREAL, Canada, Feb 14 – The new coronavirus outbreak could mean a $4-5 billion drop in worldwide airline revenue, the International Civil Aviation Organization said on Thursday. 

The UN agency reported that 70 airlines have canceled all international flights in and out of China and 50 others have reduced their operations.

Preliminary estimates show this has meant a reduction of nearly 20 million passengers compared to expectations for the first quarter of 2020.

That figure equates to potential lost revenue of up to $5 billion, the agency said.

The virus has killed nearly 1,400 people and infected 64,000, almost all of them in China.

“Prior to the outbreak, airlines had planned to increase capacity by nine percent on international routes to/from China for the first quarter of 2020 compared to 2019,” the International Civil Aviation Organization (ICAO) said in a statement.

But foreign airline traveler capacity in and out of the country has gone down 80 percent, it said.

Japan looks to be hardest-hit by a reduction in Chinese air travelers in the first quarter, ICAO said. The country could lose $1.29 billion in tourism revenue, with Thailand not far behind, facing a potential $1.15 billion loss.

ICAO said the effects of the COVID-19 virus outbreak on the airline industry are expected to be larger than the 2002-2003 SARS epidemic because flight cancellations are more widespread this time.

In addition, China’s international air traffic has doubled and its domestic air traffic increased five-fold in the last 17 years.

Advertisement. Scroll to continue reading.

Chinese authorities have locked down Hubei province — the virus epicenter — and have restricted movements in several cities as part of an unprecedented effort to contain the disease.

Britain, Germany, the US, Japan and others have advised against travel to China.

Click to comment
Advertisement

More on Capital Business

Executive Lifestyle

NAIROBI, Kenya, Mar 12 – The country’s super wealthy individuals are increasing their holding of bonds, gold and cash, a new report by Knight...

Headlines

NAIROBI, Kenya, Mar 18 – Commercial Banks have been ordered to provide relief to borrowers on their personal loans, with loans eligible from March...

Coronavirus

NAIROBI, Kenya, Mar 22 – Airtel Kenya is offering free internet access for students in order to enable continued learning at home in the...

Headlines

NAIROBI, Kenya, Mar 16 – The World Bank has given the Kenyan government USD 60 Million (Sh6.1 billion) to help combat the deadly coronavirus pandemic...

Coronavirus

NAIROBI, Kenya, Apr 13 – As the local telecommunications industry gears up to roll out 5G networks in the country, the Communications Authority of...

Ask Kirubi

NAIROBI, Kenya, Mar 24 – Businessman and industrialist Dr. Chris Kirubi is set to own half of Centum Investment Company PLC, following a go-ahead...

Ask Kirubi

NAIROBI, Kenya, Mar 9 – Businessman and industrialist Dr. Chris Kirubi has urged members of the public to exercise extreme caution when making any...

Kenya

NAIROBI, Kenya, Jun17 – Kenya’s tea leaves manufacturer Kericho Gold, has been awarded the Superbrands Seal by Superbrands East Africa for their quality variety...