Companies and industries are losing billions of dollars due to the novel coronavirus (COVID-19). A lot of the money is due to reduced travel to and from Asian countries. Other industries have been impacted due to reduced productivity or the inability to meet demand.
Airlines could lose $30 billion
According to the International Air Transport Association, canceled flights and travel to China is set to cost global airlines approximately $30 billion. This is primarily due to the coronavirus and fears of its spread. International carriers could lose $1.5 billion but airlines operating primarily in the Asia-Pacific region will feel the brunt of the impact, with potential losses reaching $28 billion.
Hyatt’s China business is down 90% in February
Hyatt Hotel’s quarterly earnings call was overcome with talk about the coronavirus. Hotels in the Asia-Pacific countries have been operating under extraordinary circumstances. Due to a cluster of COVID-19 cases, 26 properties were closed, and many others are running at very low occupancy. Businesses have canceled meetings and multinational retreats in the areas, which has also affected revenue.
Apple to fall short of projected revenue due to coronavirus, losing $45 billion
In an investor update, Apple warned that it no longer expects to meet its first quarter numbers. The company is concerned not only with meeting production numbers but also demand of Apple products around the globe. In China, Apple stores have been closed to protect the health and welfare of both customers and employees. However, this is causing a supply chain issue and there is now a broader fallout to stock prices.
Global economy has been disrupted
From children’s toys to Teslas, the coronavirus in China is disrupting the global flow of business. Supply chains have been broken. So many products and parts are manufactured in China, and the country has been at a standstill for almost two months. Activities at factories have either slowed or stopped and inventory cargo has halted. Hopefully the virus will be controlled, and business will return to normal soon.
While COVID-19 has caused a world health crisis and public health emergency, because of the impact on businesses and global industries, it is also causing a global economic crisis. Overcoming the fears of customers and regaining their business may take time. Promoting healthy facilities that have incorporated advanced disinfection and sterilization methods can help.
Commit to passenger health, employee safety and client wellness to regain customers’ trust that you are taking precautions to put their health first.