Airlines Face Loss of up to $30 Billion in Revenues in Wake of Coronavirus; Pandemic Would Spark Deep Recession and Pose a ‘Significant Threat’ to Trump’s Re-Election, Top Economist Says

By Breitbart. The spread of the coronavirus from its epicenter in central China to infections identified around the world is having a severe impact on airlines as consumers cancel or delay travel plans. Industry experts say airlines worldwide could lose as much as $30 billion in revenues this year, with Chinese carriers facing the brunt of the loss with an estimated $12.8 billion deficit.

The Asia-Pacific region could face lost revenues of $12.8 billion, and carriers outside of that region could be out $1.5 billion, according to the International Air Transport Association (IATA).

“Regional carriers will see their revenue dip by 3 per cent, but this figure can go up to 50 per cent if the outbreak continues and travel restrictions are expanded,” Muhammad Ali Albakri, regional vice-president, Africa and the Middle East, at IATA said in a GulfNews.com report:

Albakri said there has been a drop in ticket sales in the Middle East and elsewhere. The industry is staring at a potential 13 per cent full-year dip in passenger demand for carriers in the Asia-Pacific region.

The estimates by IATA are based on a scenario where COVID-19 has a similar V-shaped impact on demand as was experienced during the SARS outbreak in 2003. SARS was responsible for the 5.1 per cent fall in revenue per passenger kilometre (RPK, an industry measure) carried by Asia-Pacific airlines.

(Read more from “Airlines Face Loss of up to $30 Billion in Revenues in Wake of Coronavirus” HERE)

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Coronavirus Pandemic Would Spark Deep Recession and Pose a ‘Significant Threat’ to Trump’s Re-Election, Top Economist Mark Zandi Says

By CNBC. Moody’s Analytics Mark Zandi warns Wall Street is underestimating the damage from a coronavirus pandemic — both on the economy and President Donald Trump’s re-election campaign.

“Right now, we don’t have a whole lot of confidence. I mean he can’t seem to get on the same page with the experts, the CDC,” the firm’s chief economist told CNBC’s “Trading Nation” on Friday. “This is a significant threat to his re-election.”

Not only is the response to the medical emergency key, an economic downturn sparked by the coronavirus would be political kryptonite. . .

“They’re at least even odds,” he said. “If you take the most likely scenario and the CDC is roughly right, then it’s pretty hard to avoid one.” . . .

“Valuations were very stretched. Anything probably would have pushed the stock market back on its heels,” Zandi said. “COVID-19 [coronavirus] is more than just something, and that is something very substantive.” (Read more from “Coronavirus Pandemic Would Spark Deep Recession and Pose a ‘Significant Threat’ to Trump’s Re-Election, Top Economist Mark Zandi Says” HERE)

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