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Airlines in Turbulence - Virus Outbreaks and their Impact on the Aviation Market
Date:5/21/2009

Frost & Sullivan's Web Conference on the current global situation

LONDON, May 21 /PRNewswire/ -- Virus outbreaks and their impact on the airlines will be discussed during a web conference that Frost & Sullivan will host on Wednesday, 3 June, at 4 pm BST.

(Logo: http://www.newscom.com/cgi-bin/prnh/20081117/FSLOGO)

Aerospace & Defence Research Analyst John Siddharth will analyse the current global situation and take a first look at how a possible pandemic could affect airline operations and profitability, by drawing comparisons between the recent swine flu and past virus outbreaks.

Over the last year, the airline market has been experiencing turbulent times, following steep fluctuations in jet fuel prices and the global economic credit crisis. The majority of the airlines globally have seen a fall in demand for air travel and, those that survived so far, have initiated restructuring programmes to help get through the downturn. However, the drop in air travelers and the cancellation of flights in swine flu affected countries may cost airlines further losses.

A similar scenario took place in 2003, with the outbreak of Severe Acute Respiratory Syndrome (SARS), though this was effectively restrained within the Asia-Pacific region. Over a 6 month period, SARS led to severe financial losses for airlines and airports based in the affected areas, as airline load factors dropped instantly by 30-80% in the worst cases.

"The 2003 crisis is a clear indication of what could happen overnight in the instance of a swine flu pandemic today; and no one in the air transport industry is immune from the repercussions. What we need now," says John Siddharth, "is for airlines and airports to continue their
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