IATA: Direct revenue impact from coronavirus about 5% of total base passenger revenues

IATA reported (13-Feb-2020) passenger revenues stemming from China constitute less than 5% of total passenger revenues for carriers outside Asia Pacific. As a result, the direct impact of the decline in international travel from China due to the coronavirus outbreak will be much lower for airlines based outside Asia Pacific. This revenue loss could be compensated with the decline in fuel prices (18% decline since the beginning of Jan-2020) for some airlines depending on their hedging profiles. IATA noted European airlines would benefit less as they have the highest hedging ratios (on average hedged around 70% for the largest carriers). [more - original PR]