Cathay Pacific Airways said it made a “significant” unaudited loss of more than HK$2b (US$257m) in February alone because of widespread disruption from the coronavirus, which has left the global aviation industry reeling. The monthly loss is for Cathay and Cathay Dragon, chief customer and commercial officer Ronald Lam said Monday. Last week, Cathay reported a 28% drop in 2019 net income to $1.69m as protests in Hong Kong hurt demand. Now the coronavirus is proving to be even more damaging to the carrier’s business. Lam said Cathay will only operate a “bare skeleton passenger flight schedule” for April, representing a capacity reduction of up to 90%. That could continue into May if there’s no relaxation of travel and immigration restrictions that have been imposed by nations worldwide. <br/>
oneworld
British Airways and IAG’s management team is to remain in place for the time being, to help steer the company through the coronavirus crisis, as it prepares to cut capacity by 75% for April and May. IAG CE Willie Walsh is delaying his retirement, and his successor – Iberia CE Luis Gallego – will stay in his role at the helm of the Spanish carrier for the “next few months”, the group states. Vueling’s head, Javier Sanchez, will also stay in his post with the budget airline. He had been due to succeed Gallego at Iberia. IAG says the measures are intended to provide management stability during the coronavirus crisis. IAG says it expects Q1 capacity to be down by 7.5% compared with last year’s figure. But it is planning to cut capacity by at least 75% over the 2-month period of April-May. <br/>
IAG has not approached govts for state aid to assist the company through the coronavirus crisis, CE Willie Walsh has disclosed. Walsh said the company had not followed other individual carriers in seeking financial assistance from govts. “Govts would expect airlines to look at self-help before [calling] on [the govt] to provide state aid,” he says. “Clearly where govts are providing general support – particularly for employees impacted by the current crisis – we would avail of those general facilities for the benefit of our employees.” He says IAG has only sought relief from the EC’s ‘use it or lose it’ slot regulation, adding that he is “pleased” with the “quick” response. <br/>
Finnair has followed SAS in making dramatic operational cuts, slashing 90% of its normal capacity from the beginning of April. The carrier says the cuts – in response to a substantial fall in demand following the coronavirus outbreak – will be maintained “until the situation improves”, without indicating when it expects such a development. Finnair had already started seeking cost-saving measures but states that it is drawing up a funding plan, which would involve calling on credit lines, loans, and arranging sale-and-leaseback of unencumbered aircraft. “It is now clear that the coronavirus is by far the biggest crisis in the history of aviation,” says CE Topi Manner, stating that the company is forecasting a substantial operating loss for the full year. <br/>