Airplanes sit on the tarmac at John F. Kennedy Airport (JFK) on January 31, 2020 in New York Town.

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The effect the coronavirus disaster is possessing on airways is reminiscent of 9/11’s result on the field, according to 1 analyst.

Daniel Roeska, senior analyst for European transportation at Bernstein Analysis, explained to CNBC’s “Squawk Box Europe” Friday that the way the outbreak was weighing on airways experienced “a 9/11 come to feel mainly because the demand from customers-induced shock is not definitely connected to economics.”

The International Air Transport Association (IATA) warned on Thursday that airlines could get rid of up to $113 billion in 2020 because of the coronavirus disaster.

“The hope, of program, is that can reverse at the time we get larger clarity on the western nations what coronavirus actually will do,” Roeska said. “This need shock is quite hard on the airlines mainly because there’s actually practically nothing you can do — you can’t decreased prices to promote demand from customers at this point in time. So what airlines will do is drastically reduce schedules, begin cost restructuring measures and then of course you happen to be looking at who is levered in what way.”

He included most substantial airlines would not will need rescuing in the in close proximity to foreseeable future, but the probability of that taking place elevated the for a longer period the coronavirus outbreak dragged on.

“For low cost airways most of the tickets are non-refundable, so as very long as all those airways do not concur to hand tickets again, in fact the revenues for the next two or 3 months will not be catastrophic,” he stated.

Larger legacy airways were being “diminishing by the moment,” he warned, but would be bolstered by their financial strength, whilst the leverage of point out-owned flight operators did not appear great.

“If demand drops out but they need to have to continue paying staff members, people airways will want to start hunting for funding really quickly,” he mentioned.

Roeska’s choose on the airline industry echoed remarks designed by SouthWest Airways CEO Gary Kelly, who informed CNBC on Thursday the fallout from the coronavirus outbreak “has a 9/11-like come to feel.”

“9/11 was not an economically driven difficulty for journey. It was extra dread, rather frankly, and I assume that which is genuinely what is manifested this time,” he stated.

Talking to CNBC very last week, Mark Manduca, associate director of EMEA investigation at Citi, also drew comparisons concerning the impacts of the coronavirus and 9/11 on airlines, indicating the attacks have been one of a couple circumstances in history that experienced “some type of resonance” for airways as they grappled with the outbreak.

According to the U.S. Bureau of Transportation Figures, it took practically three a long time for the airline field to fully recover from the demand from customers shock made by 9/11.

U.S. airspace was shut down next the assaults, with the Federal Aviation Administration temporarily halting all flights, but in accordance to the IATA, the attacks weighed on airline income for several years.

In a 2006 briefing, the IATA stated 9/11 had made a “massive non permanent impact” that reduced journey demand by more than 31% in the five months following the attacks. It also estimated that airline revenues from domestic U.S. flights fell by $10 billion a yr involving 2001 and 2006.

U.K. regional airline Flybe introduced it had entered administration on Thursday, citing the coronavirus outbreak’s impact on demand for journey as a person of the motives for its collapse.

Meanwhile, facts printed Thursday by analytics firm ForwardKeys confirmed global flight bookings to Europe have been down 79% yr-on-yr in the remaining week of February.

Gurus have told CNBC they anticipate people all above the environment to cancel or postpone holidays this year because of to fears of contracting the coronavirus.

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