Hong Kong News

Nonpartisan, Noncommercial, unconstrained.
Saturday, Apr 20, 2024

Empty seats and deserted terminals: Coronavirus impact on airlines

Empty seats, grounded planes and deserted terminals: Coronavirus impact on airline industry is already 'WORSE than 9/11' and could cost $30 billion in lost revenue this year alone

As the economic impact of the coronavirus outbreak ripples out from the epicenter in China, airlines have been among the hardest hit.

Already, the outbreak is leading to sharp reductions in air travel demand in the US, with major companies such as Amazon ordering a freeze on all non-essential employee travel. The result is clear in photos showing empty airplane seats and deserted terminals.

In China, the impact has been even more severe, with air travel plummeting 80 percent at the country's busiest airports and mass cancellations of both domestic and international flights.

The reduction in global airline capacity, measured by how many seats remain grounded, is now greater than after the terrorist attacks of September 11, 2001, industry analysts say.

After 9/11, airline revenue dropped an estimated $19.6 billion in 2002 dollars. The coronavirus crisis could cost the industry an estimated $29.3 billion in lost revenue for 2020, according to the industry group IATA.

The group said on Friday that countries with confirmed virus cases in excess of 90 —China, Italy, Iran, Japan, Singapore and South Korea - represent 25 percent of global airline passenger numbers and 20 percent of global passenger revenues.

'Back after 9/11 at the end of 2001, it really took about nine months before we saw the industry recover from the impact of the events,' said Wall Street Journal aviation correspondent Benjamin Katz.

'Now, with the coronavirus, it's a very different situation and it's difficult to give an assessment, but analysts are expecting with the coronavirus this could actually last quite a bit longer,' he continued.

With the extent of the crisis still unknown, experts cautioned that the full impact on airlines remains to be seen.

'If we look back in ten years time, will this be seen as a blip or a game changer?' IBA Aviation Consultancy CEO Phil Seymour told the Journal.

On Friday, the flight cancellations continued around the globe, with United Airlines sharply cutting flights to Japan and South Korea.

United ended down 5.2 percent on Friday and were down more than 22 percent over the last week.

The Chicago-based airline said near-term demand to China has almost disappeared and demand to the rest of its trans-Pacific routes has dropped by 75 percent, United said on Monday.

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

Earlier this week, Delta cut also South Korea flights in half, citing the outbreak and plummeting demand.

Even domestically in the U.S., airlines are starting to see slumping demand, as companies reconsider the need for business travel and conferences on the cusp of a potential outbreak.

On Friday, Amazon deferred all non-essential travel, within the U.S. and beyond, and Google set new restrictions for travel to South Korea and other places, as corporations moved to protect employees from the spread of coronavirus.

Coronavirus fears have intensified in recent days since countries besides China have reported a sharp increase in cases, with six countries reporting their first cases.

Amazon is one of the latest companies to clamp down on travel because of the outbreak, which has caused at least 2,797 deaths globally.

Google is banning travel to Iran and two Italian regions, Lombardy and the Veneto, where the virus is spreading. The company will also ban travel to South Korea and Japan, from March 2, a spokesman for the company confirmed.

Canada's TD Bank Group told Reuters it was suspending all non-essential business travel to China, Iran, Italy, Japan, South Korea and Singapore. Its peer Bank of Nova Scotia has also reportedly halted non-essential travel.

JetBlue which flies in the United States, the Caribbean and Latin America, became the first U.S. airline to offer waivers for all travel on Wednesday, announcing it would suspend change and cancellation fees for new flight bookings between February 27 and March 11 this year.

Facebook also said it would cancel its annual developer conference in May because of the virus.

Among those who are still traveling, there are concerns about the screening process for international travelers at John F. Kennedy Airport in New York.

Students Emily Ferrara and Blair Haworth told WCBS-TV they had just returned from Florence, Italy, where their study abroad program was canceled because of the virus outbreak, which has infected at least 300 in that country.

Yet, the students said they weren't asked a single question about potential coronavirus symptoms once they landed in New York City.

'We didn't even get checked. Like, we're used to being in Florence where you get your temperature checked. Here they didn't do anything, which is kind of crazy,' Ferrara said.

'Considering, like, how much the cases have spread so fast, like, they should definitely be taking more precautions here.'

Newsletter

Related Articles

Hong Kong News
0:00
0:00
Close
It's always the people with the dirty hands pointing their fingers
Paper straws found to contain long-lasting and potentially toxic chemicals - study
FTX's Bankman-Fried headed for jail after judge revokes bail
Blackrock gets half a trillion dollar deal to rebuild Ukraine
Steve Jobs' Son Launches Venture Capital Firm With $200 Million For Cancer Treatments
Google reshuffles Assistant unit, lays off some staffers, to 'supercharge' products with A.I.
End of Viagra? FDA approved a gel against erectile dysfunction
UK sanctions Russians judges over dual British national Kara-Murza's trial
US restricts visa-free travel for Hungarian passport holders because of security concerns
America's First New Nuclear Reactor in Nearly Seven Years Begins Operations
Southeast Asia moves closer to economic unity with new regional payments system
Political leader from South Africa, Julius Malema, led violent racist chants at a massive rally on Saturday
Today Hunter Biden’s best friend and business associate, Devon Archer, testified that Joe Biden met in Georgetown with Russian Moscow Mayor's Wife Yelena Baturina who later paid Hunter Biden $3.5 million in so called “consulting fees”
'I am not your servant': IndiGo crew member, passenger get into row over airline meal
Singapore Carries Out First Execution of a Woman in Two Decades Amid Capital Punishment Debate
Spanish Citizenship Granted to Iranian chess player who removed hijab
US Senate Republican Mitch McConnell freezes up, leaves press conference
Speaker McCarthy says the United States House of Representatives is getting ready to impeach Joe Biden.
San Francisco car crash
This camera man is a genius
3D ad in front of Burj Khalifa
Next level gaming
BMW driver…
Google testing journalism AI. We are doing it already 2 years, and without Google biased propoganda and manipulated censorship
Unlike illegal imigrants coming by boats - US Citizens Will Need Visa To Travel To Europe in 2024
Musk announces Twitter name and logo change to X.com
The politician and the journalist lost control and started fighting on live broadcast.
The future of sports
Unveiling the Black Hole: The Mysterious Fate of EU's Aid to Ukraine
Farewell to a Music Titan: Tony Bennett, Renowned Jazz and Pop Vocalist, Passes Away at 96
Alarming Behavior Among Florida's Sharks Raises Concerns Over Possible Cocaine Exposure
Transgender Exclusion in Miss Italy Stirs Controversy Amidst Changing Global Beauty Pageant Landscape
Joe Biden admitted, in his own words, that he delivered what he promised in exchange for the $10 million bribe he received from the Ukraine Oil Company.
TikTok Takes On Spotify And Apple, Launches Own Music Service
Global Trend: Using Anti-Fake News Laws as Censorship Tools - A Deep Dive into Tunisia's Scenario
Arresting Putin During South African Visit Would Equate to War Declaration, Asserts President Ramaphosa
Hacktivist Collective Anonymous Launches 'Project Disclosure' to Unearth Information on UFOs and ETIs
Typo sends millions of US military emails to Russian ally Mali
Server Arrested For Theft After Refusing To Pay A Table's $100 Restaurant Bill When They Dined & Dashed
The Changing Face of Europe: How Mass Migration is Reshaping the Political Landscape
China Urges EU to Clarify Strategic Partnership Amid Trade Tensions
The Last Pour: Anchor Brewing, America's Pioneer Craft Brewer, Closes After 127 Years
Democracy not: EU's Digital Commissioner Considers Shutting Down Social Media Platforms Amid Social Unrest
Sarah Silverman and Renowned Authors Lodge Copyright Infringement Case Against OpenAI and Meta
Why Do Tech Executives Support Kennedy Jr.?
The New York Times Announces Closure of its Sports Section in Favor of The Athletic
BBC Anchor Huw Edwards Hospitalized Amid Child Sex Abuse Allegations, Family Confirms
Florida Attorney General requests Meta CEO's testimony on company's platforms' alleged facilitation of illicit activities
The Distorted Mirror of actual approval ratings: Examining the True Threat to Democracy Beyond the Persona of Putin
40,000 child slaves in Congo are forced to work in cobalt mines so we can drive electric cars.
×