Passengers face an extremely low risk of being infected by COVID-19 on board an aeroplane, according to the latest medical advice from the airline industry.

Key points: Industry representatives have encouraged people to travel

Industry representatives have encouraged people to travel The industry is facing a gloomy forecast for 2020, with a worst-case scenario showing global revenue could falling to levels not seen since the global financial crisis

The industry is facing a gloomy forecast for 2020, with a worst-case scenario showing global revenue could falling to levels not seen since the global financial crisis The fall would translate to between 11 and 19 per cent of worldwide passenger revenue loss

But the industry has given a grim picture of the economic impact of people choosing not to travel.

The International Air Transport Association (IATA) said in general, travel bans did not stop the spread of the disease, and it was eager to reassure people it is safe to fly.

After two days of meetings in Singapore with industry representatives and connected businesses to discuss the crisis, the IATA has encouraged people to travel.

"To date, there's no real evidence of transmission from one passenger to another passenger, despite the fact we know there are instances where people have flown and travelled even when already sick with a fever," said Dr David Powell, IATA's Medical Advisor.

"It is relatively reassuring I think, but let's just remember that most of this outbreak has been driven by close contact with people that are significantly sick and by close contact, in the most cases there actually has been household contact or healthcare worker contact.

"So whilst all of us have seen media reports at the exceptions to that rule, amongst those 90,000 people [infected worldwide], really most of them have been truly close, in other words up close and personal with people unwell at the time.

"That's the message that we're anxious to get across, that normal human contact such as all of you sitting there in a couple of feet of each other is not really risky and the aeroplane environment is probably less so than in this room right here because your average jet airliner has an air change rate that is 10 times what this room is."

Aviation expert Dr David Yu said while the airline industry has commercial incentives to encourage people to travel, IATA's recommendation was based on medical advice and can be trusted.

But he said regulations in some countries due to coronavirus are still prohibitive.

"It's visa restrictions, immigration restrictions that's really stunting a lot of it," he told the ABC.

"For example, I'm based in Shanghai, if I go to Korea for example I might not be able to come back or I would have to go into quarantine.

"So, this is not just a strict 'can you travel' - there may be other ramifications as well.

"This is not just industry saying it, it obviously it has to be coordinated with the appropriate health experts and of course the governmental advisors.

"Aviation is still highly regulated in many parts of the world, so basic coordination with governments is a must."

Airlines in Asia-Pacific hit, followed by Europe

An aviation expert says airlines that are already struggling may fold because of COVID-19. ( ABC News: Andrew Greaves )

The industry is facing a gloomy forecast for 2020, with a worst-case scenario showing global revenue could fall by between $US63 billion and $US113 billion ($95 billion to $171 billion), levels not seen since the global financial crisis.

The $US63 billion figure is for a scenario where the disease is contained in current markets with over 100 cases as of March 2, following a V-shaped recovery, IATA said.

The $US113 billion estimate is for a scenario with a broader spreading of the disease.

This fall would translate to between 11 and 19 per cent of worldwide passenger revenue loss.

The news comes after British budget airline Flybe said it would cease operations.

Dr David Yu said airlines that are already struggling may fold because of COVID-19.

"Airlines that are already in a marginal operation, they are the most susceptible to feeling the brunt of coronavirus, versus the much financially stronger airlines, which will take a hit of course, but at least they will fight another day," he told the ABC.

"There are definitely airlines in Europe that have been struggling and last year was a record year of airline bankruptcies, so this is definitely something to be watched as the impact will definitely be felt … specifically on those smaller or less well-capitalised companies."

But he said while the numbers seem bad for the industry, travel has been very resilient.

"Its ability to bounce back once things are clear, I think that should be resonating with consumers as well."

Australian airlines already discounting

IBISWorld Analyst Tom Youl said Australian airlines were already focussing on the domestic market while consumer confidence in international travel remained low.

"We've already seen airlines undertake a number of strategies and the primary one at the moment is discounting, and this is just trying to get customers back into travel," he said.

"There may be some downward pressure in the airline industry say just over the next six months, Qantas and Virgin are likely to divert some capacity in the international market and they can now use those spare seats and aircraft in domestic travel.

"It's almost an obvious strategy if your international market isn't going so well, you turn to the domestic market to pick up some slack.

"This is likely to be aided by post-bushfire campaigns encouraging Australians to travel and to get out and see more of their country, so there are some positive conditions there, the prevailing trends in tourism are really positive.

"So while it's likely to be a tough six months overall, there are some silver linings."