The warning from the International Air Transport Association comes as British regional carrier Flybe became the first big casualty of the slump in travel demand due to the virus crisis and Norwegian Air scrapped its profit forecast for 2020.
KLM will cut back on hiring new staff and external consultants, delay new IT projects and office refurbishment plans and reduce travel expenses significantly.
Some airline companies have cancelled all China flights, while others only cancelled some flights or routes to prevent further spread of the deadly virus.
The death toll in China's Hubei province, the epicentre of the coronavirus outbreak, has risen to 170, the state media reported.
Airlines have also cancelling flights and adjusting schedules as a growing number of countries raise travel warnings to not just Hubei province where the new coronavirus broke out, but also to the rest of mainland China.
Here's an explainer on the airline industry's response to the outbreak so far and its potential financial exposure compared to SARS in 2003, which killed nearly 800 people.
Video footage and images posted on social media showed part of the Dubai airport's runway area submerged under water.
A Boeing 737-800 plane that crashed outside Tehran was carrying 82 Iranian, 63 Canadian nationals and 11 Ukrainians, a Ukrainian minister said.
EasyJet, Brussels Airlines, Eurowings, Transavia France, and Wizz Air UK flights from and to Britain, France, Belgium, the Netherlands, Luxembourg, Switzerland and Germany were cancelled on Saturday and Sunday.
Unions are pressing for a three-year guarantee of job security and an 8 percent across-the-board wage hike, while pilots accepted a 5.9% and will not participate in the strike.
Cancellation plans come because of a planned strike by a union representing cabin crew in Germany.
The hearing took place exactly one year after a 737 Max crashed off the coast of Indonesia and more than seven months after a second crash in Ethiopia. In all, 346 people died.
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