African airlines face US$40 mln hit from corona
African airlines are likely to suffer a total loss of around US$200 million this year.
Dawit Endeshaw - Coronavirus disruption could cost African airlines US$40 million in revenue this year, a global industry body said on Wednesday, a potentially devastating hit to often struggling airlines counting on lucrative Chinese routes to fund expansion.
The global hit to the aviation industry is projected to be US$29 billion this year - a 4.7% industry-wide drop in revenue per passenger kilometre, the International Air Transport Association (IATA) has said.
The blow to African airlines could be as much as US$40 million, IATA's special envoy to Africa, Raphael Kuuchi, said at an aviation conference in Addis Ababa.
IATA forecast in December that African airlines would make a loss of around US$200 million this year, similar to 2019.
Tewolde GebreMariam, chief executive officer of Ethiopian Airlines, Africa's largest carrier, said the virus had slashed passenger demand.
"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 halted direct flights from Italy's northern cities of Verona and Milan, which usually head to the Kenyan coast. Northern Italy has seen Europe's biggest cluster of coronavirus cases.
Last month, Kenya Airways and RwandAir suspended all flights to and from China until further notice.
The World Health Organisation has advised countries against banning flights. – Nampa/Reuters
The global hit to the aviation industry is projected to be US$29 billion this year - a 4.7% industry-wide drop in revenue per passenger kilometre, the International Air Transport Association (IATA) has said.
The blow to African airlines could be as much as US$40 million, IATA's special envoy to Africa, Raphael Kuuchi, said at an aviation conference in Addis Ababa.
IATA forecast in December that African airlines would make a loss of around US$200 million this year, similar to 2019.
Tewolde GebreMariam, chief executive officer of Ethiopian Airlines, Africa's largest carrier, said the virus had slashed passenger demand.
"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 halted direct flights from Italy's northern cities of Verona and Milan, which usually head to the Kenyan coast. Northern Italy has seen Europe's biggest cluster of coronavirus cases.
Last month, Kenya Airways and RwandAir suspended all flights to and from China until further notice.
The World Health Organisation has advised countries against banning flights. – Nampa/Reuters
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