March 6, 2020:
Concerns about the coronavirus are causing millions to rethink their travel plans and may cost the airline industry at least $63 billion in revenue. A report from the International Air Transport Association (IATA) also estimated that if the virus spreads more broadly, the airline industry could lose as much as $113 billion.
Those figures represent an 11% to 19% decline of total airline revenue.
Some of the losses will be offset because oil prices have fallen since the coronavirus outbreak. The cost of fuel is a major airline expense. Still, the IATA report notes that "airline share prices have fallen nearly 25% since the outbreak began." That’s a far bigger impact than "the decline that occurred at a similar point during the SARS crisis of 2003."
Each weekday, Scott Rasmussen's Number of the Day explores interesting and newsworthy topics at the intersection of culture, politics, and technology. Columns published on Ballotpedia reflect the views of the author. Scott Rasmussen’s Number of the Day is published by Ballotpedia weekdays at 9:00 a.m. Eastern. Columns published on Ballotpedia reflect the views of the author. Scott Rasmussen is founder and president of the Rasmussen Media Group. He is the author of "Mad as Hell: How the Tea Party Movement Is Fundamentally Remaking Our Two-Party System," "In Search of Self-Governance," and "The People’s Money: How Voters Will Balance the Budget and Eliminate the Federal Debt." Read more reports from Scott Rasmussen — Click Here Now.
- IATA, "IATA Updates COVID-19 Financial Impacts -Relief Measures Needed-," March 5, 2020
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