DOUGLAS KEEHow will regional carrier Chorus Aviation (Chorus Aviation Stock Quote, Chart, News TSX:CHR) fare during the coronavirus outbreak? Likely similar to other airline stocks but the end result won\u2019t be too bad, says Douglas Kee of Cardinal Capital. \u201cIf it\u2019s going to affect Air Canada, it\u2019ll affect Chorus to some extent but that\u2019s kind of far out there. Maybe that\u2019s why the stock has come off because of that, because all the airline stocks and travel stocks have been hit,\u201d says Kee, senior vice-president and portfolio manager for Cardinal Capital, who spoke to BNN Bloomberg on Thursday. \u201cBut I can\u2019t imagine it\u2019s going to affect them very much,\u201d he says. \u201cI think that dividend is okay.\u201d Shares of Chorus Aviation have struggled in recent weeks, along with the rest of the air travel sector, a disappointing turn for a stock that had been on the rise, if slowly, over 2019. Chorus, which operates as Air Canada\u2019s regional service along with having an aircraft leasing business, got a contract extension from Air Canada last January, which firmed up the company\u2019s future and gave a boost to its share price. CHR climbed 43 per cent in 2019 and had been rising over the first couple of weeks of 2020 before the coronavirus outbreak started impacting the sector. Earlier this week, Australia\u2019s Qantas and Air France both announced that the outbreak would impact their upcoming quarterly results, with many airlines suspending flights to mainland China and air travellers being more reluctant to book flights into surrounding Asian regions as well. \u201cCoronavirus resulted in the suspension of our flights to mainland China and we're now seeing some secondary impacts with weaker demand on Hong Kong, Singapore and to a lesser extent Japan,\u201d said Qantas chief executive Alan Joyce to BBC News. Earlier on Friday, the International Air Transport Association (IATA) released a statement saying that dropping passenger demand related to the coronavirus outbreak would likely cost the airline industry almost $30 billion in lost revenues this year, with the majority of those losses hitting airlines in the Asia Pacific region. \u201cThe sharp downturn in demand as a result of Covid-19 will have a financial impact on airlines \u2013 severe for those particularly exposed to the China market,\u201d read the IATA statement. \u201cThese estimates are based on a scenario where Covid-19 has a similar V-shaped impact on demand as was experienced during Sars. That was characterised by a six-month period with a sharp decline followed by an equally quick recovery.\u201d Chorus Aviation released its fourth quarter and full year 2019 financials last week, posting operating revenue for the quarter up 1.5 per cent to $338.6 million and EBITDA down 3.7 per cent to $88.6 million. For the year, Chorus reported $1.366 billion in operating revenue, up 1.0 per cent, and EBITDA of $341.7 million, up 0.3 per cent. Chorus management called 2019 a \u201ctransformative year\u201d for the company, with the signing of the Air Canada deal (the Capacity Purchase Agreement or CPA) and a concerted effort towards expanding its aircraft leasing business. \u201cWe remain confident that we can expand our leasing portfolio by up to 20 aircraft per year funded through a combination of debt and cash from operations.\u00a0The timing of these future transactions will not occur on a consistent basis; however, we expect the majority will be executed in the second half of this year. The expected growth in aircraft leasing will more than offset planned fixed fee reductions in the CPA in 2020 and beyond,\u201d the company said in a press release.