Airlines at center of storm as coronavirus spreads
5551 Min Read
European airlines stepped up their warnings over the coronavirus outbreak, with British Airways-owner IAG and Finnair flagging a hit to profits and easyJet reporting a big drop in demand into and out of a virus-affected region in Italy.
All three airlines also joined rivals in announcing cost cuts to help weather a storm of unknown severity and duration.
A new coronavirus, which emerged late last year in China, has sent demand for travel tumbling in recent weeks as the outbreak has spread around the world, raising fears of a pandemic that could plunge the global economy into recession.
The crisis is exacerbating deep rooted problems in an airline industry grappling with overcapacity, environmental pressures and the grounding of Boeing’s top-selling jet.
IAG, which also owns Iberia and Aer Lingus, usually gives an earnings forecast at this time of year, but said the uncertainty over the impact and duration of the coronavirus outbreak meant it could not give accurate guidance at this stage.
British Airways has in recent days canceled flights to and from Italy, Singapore and South Korea, after it suspended all direct flights to China in January. IAG said further cancellations would follow in the coming days.
