For the first time in 11 years “Air Travel Demand” will fall because of Coronavirus with this being the news having the profound implication for the tourism industry and the firms who are closely related with the traveling industry and the most importantly, those people who want to engage in the activity of the traveling but now they won’t be able to do traveling due to the fear of this deadly virus.
Moreover, owing to the prevailing of this virus, this would result in the declines in air travel. According to the International Air Transport Association (Iata), it says that the demands on the part of the passengers and the travelers will be reduced to the greater extent followed by the Covid-19 virus that would dismantle and negatively damage the airline industry to the greatest extent in the form of the loss of the $29.3 bn.
Furthermore, in the year of 2020, it can be said that global demands of traveling are expected to decline by 4.7%. The most important fact is that this will be the huge damage after the financial crisis of 2008 and followed. As per the concern authority, airlines have been suffering from the worst level of financial crisis.
However, owing to this, the firms are made to cut back or limit their capacity and the range of the services. This has resulted in the cutting of certain routes that were previously traveled frequently. But, the declines in the cost of the fuel would enable the firms to compensate the revenue lost. What is important to note is that this would turn out to be a highly tough and damaging year for the airline industry.
Nevertheless, along with that, the airlines that would be most affected would be those catering Asia Pacific region. Chinese domestic market is expected to suffer a loss of $12.8bn. The severe decline in the demand level is making the airlines suffer to the greatest extent.
Lastly, airlines would have to cut back and fire the labor force that is no longer needed to run. The most alarmingly it is for those who are vulnerable and associated with the Chinese market.
However, this damage followed by the recent development would impact millions of the travelers and airlines.
Alex
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