Air Canada analysts reduced their price targets after the airline withdrew its forward guidance Monday in response to the Covid-19 pandemic. The company said it’s “facing a severe drop in traffic and a corresponding decline in revenue.” Canadian prime minister Justin Trudeau said Monday the country would close its borders to all foreign travellers except Americans. Air Canada said it had cash, cash equivalents, short and long investments of C$7.1b as of March 13, an amount that analysts see as sufficient despite the unknown length of the coronavirus impact. Air Canada shares have lost more than 66% this year and fell as much as 12% in early trading Tuesday in Toronto Canadian Imperial Bank of Commerce, Kevin Chiang said: “We see 2020 as a lost year and assume traffic begins to normalise” in the second half of 2021. <br/>
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Air NZ will cut its Tasman capacity by 80% for 3 months in response to new travel restrictions and slumping demand. These changes follow Monday's announcement on capacity reductions and will take effect from March 30 through to June 30. These dates may change if demand reduces further. Overall, Tasman capacity will reduce by 80% over this period. The airline will also park many of its Boeing 777s over the next few months, doing most of its restricted international flying with more efficient Dreamliner aircraft. The airline has 8 777-300s with an average age of 8 years and the same number of 777-200s which are 13 years old on average. It has 14 Dreamliners. Monday the airline - which is facing a battle for survival - announced it would cut long haul routes by 85% and domestic flying by 30%. <br/>
Swiss has shored up its management teams in order to provide greater corporate stability as the carrier deals with the consequences of the coronavirus outbreak. It has installed Markus Binkert as its CFO – a position which had been left vacant – and appointed Thomas Frick as COO, having restored the post on the management board. “Both appointments are an immediate response to the major challenges which the company is currently facing as a result of the coronavirus crisis,” says the carrier. Binkert is the CCO for Lufthansa’s Munich hub, and formerly served in this role at Swiss from 2013 before moving to the Munich post last year. Frick was formerly a Swissair and Swiss pilot and is currently accountable to regulatory authorities for Swiss flight operations. <br/>
Brussels Airlines has become the latest carrier to shut down services in the wake of the coronavirus outbreak, suspending all scheduled flights for a month. It says the services will be gradually wound down and then halted March 21 and will not restart until April 20. “We need to take the decision to temporarily cease our operations,” says CE Dieter Vranckx. “It will allow us to reduce the negative financial impact on our company.” Brussels Airlines says it “fully understands” the travel measures imposed by the Belgian authorities and other govts. It adds that it will retain a “minimal” standby capacity ready to serve any demand for repatriation flights. The airline’s workforce has already been temporarily cut by 30% and this will increase to almost 100% at the point of complete flight suspension. <br/>