Airlines could lose up to $ 113 billion.
The new coronavirus continues to cause losses in various sectors of the world economy.
The international air transport Association on Thursday warned that airlines could lose up to $ 113 billion due to the spread of the virus. This figure is four times higher than the forecast published two weeks ago. The Association calls on governments to help airlines by lifting certain restrictions and payments.
British regional airline Flybe on Thursday declared bankruptcy amid falling sales due to a coronavirus outbreak. The company narrowly avoided bankruptcy in January, but the spread of the virus was the latest blow. The collapse of the company disrupted the plans of many passengers and threatens regional airports in the UK.
The risk is especially strong for small airlines. For example, low-cost airline Norwegian Shuttle canceled 22 long-distance flights between Europe and the United States from the end of March to the beginning of May. The Finnish company Finnair sends all employees in Finland on forced leave for a period of two weeks to a month due to losses due to the virus.
In the United States, more and more companies report on identifying cases of the disease among its employees. Facebook is temporarily closing its Seattle office after a virus was diagnosed in an employee. The sick employee was last at work on February 21, so the office will close until Monday when the incubation period ends. However, the company, following the recommendations of local authorities, encourages employees to work from home until March 31, if possible.
Amazon this week reported that one employee in Seattle and two in Milan were infected with the virus. All three are quarantined.
Aflac reported a sick employee at its call center in Kobe, Japan. A staff member attended an event in Osaka, where several participants also became infected.
The organization of the petroleum exporting countries (OPEC) is considering reducing production to contain the drop in oil prices, which has intensified due to the virus.
The reduction in the number of flights after the virus outbreak caused a drop in demand for jet fuel. The volume of industrial production in China fell amid the isolation of entire towns. Many large companies around the world have suspended business trips as a precautionary measure.
Oil prices have stabilized ahead of the OPEC meeting due to expectations that oil exporters will agree to increase production restrictions. Analysts believe that production volumes will be reduced by 1 million barrels per day in addition to existing restrictions. Crude oil prices have fallen 25 percent since January.
There is still volatility in financial markets. After the positive dynamics noted the day before, Dow futures fell by almost 500 points.