Last week, the global airlines group International Air Transport Association (IATA) confirmed the reduction in passenger demand worldwide.
The international organization of airline firms pointed to the ongoing coronavirus epidemic negatively impacting the world.
IATA cited that the healthcare problem could lead to a loss of revenue, amounting to $27.8 billion this year.
Asia-Pacific airline companies reportedly suffer the brunt of this latest trend. The bulk of these service providers are operating in China and its areas like Hong Kong and Macau.
Philippine airline company Cebu Pacific is one example of a local company struggling due to the coronavirus epidemic.
The firm said that its clients had been requesting refunds.
Philippine print and digital newspaper The Philippine Star reported that these customers have deferred or canceled their visits to China.
Carmelo Arcilla works for the Civil Aeronautics Board (CAB) as its executive director.
He affirmed that the coronavirus scare had affected 30 percent of Cebu Pacific’s flights.
Aside from this local airline, Arcilla said that Philippine Airlines’ (PAL) trips are also experiencing struggles.
The CAB official mentioned that the massive negative effect of the coronavirus dilemma had affected 51 percent of AirAsia Philippines’ flights as well.
Arcilla explained that the aviation industry in the Philippines is yet to come up with the exact number of sector losses.
He confirmed that the trend overall has been that airlines worldwide have been grappling with booking downturns.
They are also experiencing hard times because of increased in no-shows, Arcilla relayed.
Besides, he said that there is an overall decline in interest to travel among the world’s passengers.
Arcilla stressed that the coronavirus outbreak is to blame.
The executive director of CAB remarked that the local airline firms have convened with bureaus in the aviation industry lately.
They had presented their desires list to the Philippine government. Arcilla said that these Philippine airline service providers aimed to water down the repercussions on their bottom line.
He added that these companies intend to grow their domestic services at this point.
In this manner, they could compensate for the downswing in traffic, Arcilla explained. The CAB official pointed out that they are looking at these matters at this time.
Cebu Pacific, formally known as Cebu Air, Incorporated (PSE: CEB) closed at P76.25 per share, down by 3.55 or 4.45 percent on Monday, February 24, 2020.
The total value reached P10,854,407.00. The 52-week high of Cebu Pacific is at P98.90. Meanwhile, its 52-week low is at P58.00.
As for PAL Holdings, Incorporated (PSE: PAL), it closed yesterday at P7.00 per share. This last trade price of the airline firm’s stock did not indicate a change.
The Total value reached P143,430.00. The 52-week high of PAL is at P11.52. Meanwhile, the Philippine Stock Exchange reported its 52-week low is at P6.90.