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Coronavirus: Hong Kong’s aviation sector projected by IATA to be Asia’s worst hit, with 46 per cent collapse in demand and US$6 billion revenue loss

  • Spokesman warns carriers reeling from blows to air travel brought on by health crisis, and urgent financial aid is needed
  • A staggering 146,000 industry jobs locally could be at risk this year

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Planes grounded at Hong Kong’s airport. Photo: Robert Ng

Hong Kong’s aviation sector is projected to be the worst hit in Asia, with the coronavirus pandemic expected to cut passenger numbers by 23.6 million and place 146,000 jobs in the industry at risk this year, a global airline association has estimated.

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In new figures released, the International Air Transport Association (IATA) forecast air travel demand for Hong Kong to collapse by 46 per cent in 2020 year on year, and a financial review concluded it faced a US$6 billion (HK$46.5 billion) loss in revenue.

The travel and tourism sector suffered further blows on Monday with a ban on transit stopovers and non-residents extended indefinitely.
Empty check-in counters for Hong Kong’s flag carrier Cathay Pacific. Photo: Felix Wong
Empty check-in counters for Hong Kong’s flag carrier Cathay Pacific. Photo: Felix Wong

For the publicly listed Cathay Pacific Group, which controls three of the city’s four airlines, passenger revenue last year amounted to HK$74 billion. HNA-backed Hong Kong Airlines is privately held and does not disclose its financial performance. All of the city’s carriers face financial hardship.

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One of the largest air travel markets, China, first hit by the coronavirus outbreak – which led to a near-wipeout of all flights for the country for a brief period earlier this year before a gradual rebound – would shrink 37 per cent this year, according to IATA.
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