Flybe might just be the first of many airlines to go under if the coronavirus spreads widely, industry trade body the International Air Transport Association (IATA) warned today.
Alexandre de Juniac, IATA’s director general, said the turn of events as a result of Covid-19 was almost 'without precedent' as he dramtically increased its estimate of the possible cost of the outbreak to the sector.
The virus is set to mean at least US$63bn in lost revenue, IATA said, but that figure could rise to US$113bn if the virus spreads extensively to more countries.
The US$113bn figure is almost four times more than it estimated just a fortnight ago.
In the UK, airline shares have already taken a shellacking in recent weeks as the market has woken up to the impact of the spread of the disease.
Even industry heavwights such as easyJet PLC (LON:EZJ) and British Airways owner International Consolidated Airlines (LON:IAG) are under pressure and shares in both were marked down further today.
De Juniac urged governments around the world to take action to help.
FlyBe latest coronavirus victim: collapses into administration
“Many airlines are cutting capacity and taking emergency measures to reduce costs. Governments must take note.
"Airlines are doing their best to stay afloat as they perform the vital task of linking the world’s economies.
"As governments look to stimulus measures, the airline industry will need consideration for relief on taxes, charges and slot allocation.
“These are extraordinary times.”