💎 Fed’s first rate cut since 2020 set to trigger market. Find undervalued gems with Fair ValueSee Undervalued Stocks

Airlines suspend, scale back direct flights to China amid virus fears

Published 01/29/2020, 05:10 PM
Updated 01/29/2020, 05:13 PM
Airlines suspend, scale back direct flights to China amid virus fears
LHAG
-
AIRF
-
DAL
-
ICAG
-
AC
-
AAL
-

By Sarah Young and Allison Lampert

LONDON/MONTREAL (Reuters) - Global airlines on Wednesday continued to suspend or scale back direct flights to China's major cities amid an increase in travel warnings and decline in demand from passengers over the coronavirus.

Fears over the spread of the flu-like virus, which originated in the central Chinese city of Wuhan, are increasing as the death toll rose to 133.

The virus appears to represent the biggest epidemic threat to the airline industry since the SARS outbreak, which at its peak in April 2003 led to a 45% plunge in passenger demand in Asia, analysts said.

British Airways (L:ICAG) said it suspended all direct flights to and from mainland China.

BA.com, the airline's website, shows no direct flights to mainland China are available to book in January or February, but the airline said in an email that the cancellations were in effect until Jan. 31 while it assesses the situation.

Air Canada (TO:AC), which planned earlier this week to cancel just a select number of its 33 weekly flights to China, said on Wednesday that it would suspend all direct flights to Beijing and Shanghai.

The suspension, from Jan. 30 to Feb. 29, came after the government of Canada updated its travel advisory urging its citizens to avoid nonessential travel to China.

American Airlines Group Inc (O:AAL) said on Wednesday it would suspend flights from Los Angeles to Beijing and Shanghai but continue flying from Dallas, and Delta Air Lines (N:DAL) said it was halving its U.S.-China schedule to about 21 weekly flights.

U.S. officials said the White House had decided against suspending all flights to China for now, but that decision could be changed if warranted.

Among European carriers, Germany’s Lufthansa (DE:LHAG) is suspending its own, Swiss and Austrian Airlines flights to and from China until Feb. 9, while Air France (PA:AIRF) said it would reduce its flight schedule to Beijing and Shanghai this week.

Iberia, part of the IAG group along with BA, said it was temporarily suspending all flights to Shanghai.

Asia-Pacific accounts for about 19% of both Air France-KLM and Lufthansa's available seat kilometers and 8% of IAG's in 2019, Goodbody analysts said.

Carriers, including Hong Kong’s Cathay Pacific Airways, are allowing their flight attendants to wear face masks and gloves on flights to protect against fears of contagion risks.

Wesley Lesosky, president of the Canadian Union of Public Employees unit that represents Air Canada flight attendants, said by email that members have the option of wearing masks and gloves on flights to China.

But flight attendants remained "concerned with the effects the virus could have if contracted, how to recognize an infected passenger and how to deal with the nervous passengers onboard."

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.