Virus casts chill over aviation outlook

Singapore: Airlines and aircraft makers are taking a body blow from the virus outbreak in China, as Boeing reported zero orders for new jets in January and forecasting the cargo business will likely contract in 2020.

"We, like our customers, are trying to figure out the depth and breadth of this virus and the impact on the airlines," Boeing's vice president for commercial marketing, Randy Tinseth, said Wednesday at the Singapore Air Show.

"Without doubt, we will see an impact," he said. Tinseth said that the cargo business will likely be flat this year and that growth in aircraft sales is likely to fall below its forecast of 2.5-2.7% in 2020.

"If we're not seeing goods travel, not seeing planes fly, it's going to be tough to see any growth in the cargo market this year," Tinseth said. "We see 14 months of contraction in the freight market."

The outbreak of the COVID-19 virus has prompted many airlines to halt flights to and from China and devastated travel within the country as many cities halted public transport, seeking to slow its spread. In Southeast Asia, airlines will need 4,500 new aircraft over the next 20 years, worth $710 billion, Boeing forecasts.