Airlines slash flights to cut costs as coronavirus hits travel demand

The crisis engulfing the airline industry deepened Tuesday as carriers cancelled flights, withdrew earnings guidance and implemented austerity measures to cope with the travel slump caused by the coronavirus outbreak. Scott Kirby, president of United, said the carrier was bracing for revenues to fall as much as 70% in April and May. “We’re planning for the public concern around the virus to get worse before it gets better,” he said. In the US, American Airlines, Delta and United pulled their 2020 financial forecasts. Alan Joyce, CE of Qantas, said: “I think this will be a survival of the fittest,” as the Australian carrier outlined drastic cost-cutting measures that included cutting almost a quarter of international flights, asking staff to take unpaid leave and sacrificing his own salary for the next three months. “We know we can ride this out,” said Joyce. “Not all airlines around the world will.” Norwegian Air Shuttle, one of the most financially stretched carriers, said it would slash 3,000 flights over the next three months, equating to about 15% of its total capacity. Cracks have already begun showing in those nations worst affected by travel restrictions. Korean Air has warned it may not survive if the coronavirus outbreak is not brought under control quickly. The group has cut 80% of its international capacity because of the virus, compared with 18% in 1997-1998 during the Asian financial crisis. China’s main carriers have slashed routes and put pilots on unpaid leave. Some have had to refinance their fleets. <br/>