👀 Ones to watch: The MOST undervalued stocks to buy right nowSee Undervalued Stocks

United Airlines sharply cuts flights to Asia, cancels investor day

Published 02/28/2020, 07:23 PM
Updated 02/29/2020, 07:25 PM
© Reuters.
UAL
-

WASHINGTON (Reuters) - United Airlines Holdings Inc (O:UAL) said on Friday it was sharply cutting flights to Japan and South Korea, as travelers worried about the coronavirus outbreak slash ticket purchases for those destinations.

It also canceled its investor day that had been due to be held on March 5.

With investors firmly focused on how the company is managing the near-term impact of the coronavirus, United said it was not "practical to expect that it can have a productive conversation focused on its long-term strategy next week."

The event will be rescheduled for September.

Chicago-based United already withdrew its 2020 guidance this week due to uncertainty over the duration and spread of the virus. It warned that near-term demand to China has almost disappeared, with demand for the rest of its trans-Pacific routes down by 75%.

As a result, the company is temporarily reducing flights from the U.S. mainland to Tokyo, Osaka, Singapore and Seoul and extending the suspension of U.S. flights to mainland China and Hong Kong through April 30, it said on Friday.

The airline is cutting about two thirds of its flights to Seoul, nearly a third of flights to Japan and 40% of flights to Singapore. It is also flying smaller planes on some routes.

Among U.S. airlines, United has the biggest international exposure, drawing about 40% of its revenues from overseas flights.

Earlier this week, Delta cut South Korea flights in half, citing the outbreak.

United shares fell 5.2% on Friday, amid a widespread global share rout, and are down 21% over the last week.

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.