A new projection by IATA puts the potential cost to commercial aviation of the coronavirus outbreak at a massive $113 billion.
Airlines could see revenues drop by nearly 20% on average, it says.
It has wrought havoc to the industry at an unprecedented speed.
"In little over two months, the industry’s prospects in much of the world have taken a dramatic turn for the worse. Many airlines are cutting capacity and taking emergency measures to reduce costs. Governments must take note," said Alexandre de Juniac, IATA’s director-general and CEO.
The sharp dip in travel demand has now begun to impact the US domestic market.
Both United Airlines and JetBlue have announced they will make capacity cuts on US routes.
Airline stock prices have plunged significantly more than compared to the SARS epidemic in 2003.
"These are extraordinary times," de Juniac said, and called on governments to offer tax breaks and other financial assistance to the industry.
