The coronavirus epidemic could cost passenger airlines up to $113 billion in lost revenue this year, an industry body warned on Thursday, the same day that regional UK carrier Flybe became an early casualty of the virus crisis.
Adam Reed Reports
Gloomy skies: Flybe collapses; IATA warns on huge global hit
British budget airline Flybe has become an early casualty of the slump in travel caused by the coronavirus.
The regional carrier has grounded all of its aircraft, with customers being told to "not travel to the airport".
Flybe's failure comes less than two months after a rescue package for the company was agreed by its owners and the UK government.
The deal has now been scrapped as the UK responds to the virus outbreak, putting 2,400 jobs at risk.
It's collapse is just the latest warning sign for airlines, which are rushing to cut flights and costs, and warning of a hit to earnings.
On Thursday budget carrier Norwegian Air scrapped its profit guidance for this year, having earlier predicted a return to profitability.
Shares in Norwegian, which had already lost more than 50% of their value this year, were down more than 6% early Thursday (March 5).
Now few airlines look immune to the outbreak.
The International Air Transport Association predicted Thursday that the industry could lose up to $113 billion in passenger revenue this year.