S&P Global Ratings said Friday the ultimate impact of the new coronavirus outbreak on its global airline ratings will depend on the duration and severity of the crisis.

The spread of COVID-19 cases across the globe has caused air traffic demand to plunge in recent weeks. With the virus now present in more than 100 countries and territories, more flight cancellations are expected as lower travel demand, S&P said in a statement. 

"We see significant downside potential to the International Air Transport Assn.'s 19 percent global 'extensive spread' revenue loss projection given the recent, rapid spread of the virus in the U.S. and President Trump's announced 30-day ban on travel to the U.S. from most of Europe," it said.

All airlines will need to make material adjustments to their capacity and operating cost bases in response to what may or may not be a short-term crisis but is sure to have a lasting impact on air travel throughout 2020, the ratings firm said.

S&P Global Ratings is a division of New York-based Standard & Poor's Financial Services LLC. (Yonhap)