Budapest Post

Cum Deo pro Patria et Libertate
Budapest, Europe and world news

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.'

AI Disclaimer: An advanced artificial intelligence (AI) system generated the content of this page on its own. This innovative technology conducts extensive research from a variety of reliable sources, performs rigorous fact-checking and verification, cleans up and balances biased or manipulated content, and presents a minimal factual summary that is just enough yet essential for you to function as an informed and educated citizen. Please keep in mind, however, that this system is an evolving technology, and as a result, the article may contain accidental inaccuracies or errors. We urge you to help us improve our site by reporting any inaccuracies you find using the "Contact Us" link at the bottom of this page. Your helpful feedback helps us improve our system and deliver more precise content. When you find an article of interest here, please look for the full and extensive coverage of this topic in traditional news sources, as they are written by professional journalists that we try to support, not replace. We appreciate your understanding and assistance.
Newsletter

Related Articles

0:00
0:00
Close
Spain and Morocco Trade Blame After 72,000 Migrants Enter Ceuta
AI Is Remaking the US Economy, From GDP Growth to iPhone Prices
Europe’s Heat and Drought Are Now Disrupting Power, Shipping and Tourism
Europe’s Drying Rivers Trigger Power Cuts, Factory Shutdowns and Wildfire Emergencies
Record-Low Danube Forces Nuclear Cuts and Emergency Power Curbs
Danube Drought Forces Hungary’s Paks Nuclear Plant Into Full Shutdown
Ceuta Death Toll Rises as Spain and Europe Clash Over Border Response
Valued at $109 Million: F-35B Fighter Jet Crashes in Southern California
Record-Low Danube Exposes Probable Mammoth Remains in Bulgaria
US Says It Has Carried Out Heavy Strikes on Iran After Attempted Attacks on Its Forces
The AI User Nightmare: Private Claude Conversations Leaked to the Internet
Over 24 Hours in the Air: Qantas Airbus Completes Record-Breaking Test Flight
Massive Wildfires Ravage Southern Europe: Fatalities in Greece and Evacuations Across France, Spain, and Turkey
Nvidia Reportedly Takes Vast Texas Data-Centre Lease to Underwrite AI Expansion
FIFA’s Private-Investment Plan for World Cup Rights Draws European Revolt
Apple Briefly Crosses Five Trillion Dollar Valuation as Investors Retreat From AI Bets
Fresh Heatwave Threatens to Rekindle France’s Historic Wildfire Crisis
Following OpenAI's Cyberattack: 'Most Companies Still Do Not Understand What Is Coming'
OpenAI Sued After ChatGPT Allegedly Discouraged Emergency Care Before Near-Fatal Embolism
Miliband Sets Climate and International Law at Centre of UK Diplomacy
Czech Central Bank Governor Rejects Early Euro Entry and Rate-Cut Pressure
Trump Readies New Tariffs as Temporary Global Levy Nears Expiry
Vivienne Westwood Casts Cicciolina, 74, in Its New Autumn Campaign
Dejavu: Germany’s Military Expansion Reshapes Europe’s Strategic Balance With France
Morgan Stanley Builds a Wall Street Lead in AI Infrastructure Finance
High Prices Push Coffee Drinkers Toward Whole Beans and Home Brewing
Trump Draws Boos and Podium Scrutiny at Spain’s World Cup Triumph
Brilliant move: Péter Magyar Moves to Nominate Chess Grandmaster Judit Polgár as Hungary’s President
Spain Defeats Argentina in Extra Time to Win Second World Cup
Current AI Seeks to Build an Open Global AI Infrastructure Outside Big Tech Control
Germany’s Economic Malaise Reopens the Sunday Shopping Debate
Proposed U.S.-Saudi Nuclear Pact Could Permit Limited Uranium Enrichment Under International Safeguards
Netherlands Declares Water Shortage Emergency After Drought Pushes Rivers to Historic Lows
Why Kentucky Fried Chicken Became KFC—and Why the False Explanations Persist
Ukrainian Drones Strike Wildberries Warehouses Deep Inside Russia
Reported CIA Mission Helped Clear the UAE’s Path to Advanced US AI Chips
Artificial Intelligence Capital Fuels Markets While Governments and Regulators Face Mounting Strategic Tests
China’s Moonshot’s Kimi K3 Narrows the Gap With Anthropic Through Scale, Openness and Lower Cost
The Ledger Will Not Trust on Faith
Trump Administration Pressures Banks to Restrict Financial Access for Undocumented Immigrants
Passenger Bound for Germany Refused to Sit Beside a Woman on a Plane — Then Slapped a Flight Attendant
Ukraine’s Leadership Rift Spills Into the Streets as Protesters Target Army Chief
Ukrainian Drone Barrage Kills Eight and Strikes Russian Logistics Network
The Ten World Cup Finals That Defined Football History
Smartphones Are Getting More Expensive, Sales Are Collapsing, and Even Apple Admits: "Prices Will Rise"
The Monaco Bombing Has Become a Test of Ukraine’s Intelligence Accountability
Leadership Change and Strategic Rivalry Redraw the Political Map
The AI Race Enters Its Infrastructure Era
Britain Nationalises British Steel to Protect Scunthorpe Production and Strategic Supply
French National Assembly Overrides Senate to Pass Historic Assisted-Dying Legislation
×