The coronavirus has suddenly and unexpectedly created the biggest challenge for the global airline industry since 9/11, the Wall Street Journal reported. Bookings around the world are falling sharply. U.S. carriers are following Asian and European airlines in cutting flights, grounding planes and enacting draconian cost reductions, such as hiring freezes and unpaid leave. Foreign airlines are looking for help from governments, banks and investors. Major airlines are trying to reassure passengers with promises of scrubbed cabins, filtered air and free-flowing hand sanitizer. The International Air Transport Association, a trade body, estimates the virus could reduce passenger revenue world-wide this year by between $63 billion and $113 billion, or as much as 20 percent. As recently as last month, the trade group was forecasting a hit of less than $30 billion. The coronavirus has grounded 2,000 aircraft around the world, analysts at Jefferies estimate. By comparison, the Sept. 11, 2001, terrorist attacks cut airline revenues by 7 percent, or $23 billion, according to IATA. An eruption of an Icelandic volcano, which severely curtailed trans-Atlantic and European flying for six days in 2010, cost the industry $1.7 billion in lost revenue. Read more. (Subscription required.)
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