Coronavirus turmoil spreads to airline cargo operations

The air transport sector faces mounting freight and logistics disruption with broader repercussions at stake due to the coronavirus outbreak, economists warn. Thousands of dropped flights have already slashed “belly cargo” capacity in airliner holds, with operators like Lufthansa also scaling back freighter services in response to crew health concerns and uncertain demand. The crisis has dimmed hopes of a rebound for air cargo after its worst year in the decade since the financial crisis, the IATA said Wednesday. “We are in unknown territory with respect to the eventual impact of the coronavirus on the global economy,” IATA said. “With all the restrictions being put in place, it will certainly be a drag on economic growth.” With manufacturing paused for the Chinese New Year - and planned stoppages at Airbus and elsewhere now being extended - it may be weeks before economies feel the full brunt of the freight upheaval currently playing out. As things stand, “many supply chains are essentially halted, so there’s nothing to transport,” Bernstein analyst Daniel Roeska said. “If you’re ordering people to stay in their houses it’s difficult to keep factories running.” This week will see 25,000 fewer flights operated to, from and within China than a fortnight ago, aviation data firm OAG said, with services suspended by 30 airlines.<br/>