- Coronavirus: African Airlines Could Lose $40m in Revenue
Fast spreading coronavirus could cost African airlines an estimated $40 million, according to a statement from the industry on Wednesday.
This was after several airlines across the globe restricted operations amid coronavirus outbreak. Experts have said restrictions and falling demands could cost the Asia-Pacific airlines over $29 billion or about 13 percent in revenue in 2020.
Raphael Kuuch, IATA’s special envoy to Africa, said African airlines could lose around $40 million this year to flight restrictions and drop in demands.
Tewolde GebreMariam, the CEO, Ethiopian Airlines, said the fast-spreading coronavirus is hurting the airline demand, Africa’s largest airline.
“The air travel demand for Ethiopian Airlines has declined by 20% due to the corona,” Tewolde told Reuters.
“It is a big shock,” he told the conference.
On Tuesday, Kenya Airways stopped direct flights from Italy’s cities of Verona and Milan as the cases from the two cities surged.
Similarly, RwandAir and Kenya Airways suspended all flight operations to and from China until further notice.
While the World Health Organization has advised against suspending flights, businesses and nations are taking precautions as they struggle to contain the outbreak in their nations.