Qantas Cuts About 90% of All Overseas Flights Amid Coronavirus Outbreak
By Alex Ho
Investing.com - Qantas Airways Ltd (ASX:QAN) said on Tuesday that it is cutting its international capacity by about 90% until at least the end of May as the coronavirus outbreak continued to worsen.
The slash in international flight was up from a 23% reduction announced last week. It was the airline’s fourth round of reductions in less than a month. Domestic capacity will also be cut by around 60%, the company said.
Qantas added that it had suffered a “precipitous decline in demand” and any rebound could be months away.
Sydney-based consultancy CAPA Centre for Aviation warned in a statement this week that the virus pandemic could potentially bankrupt most airlines globally by the end of May if governments and authorities do not take coordinated steps to avoid such a situation.
“Coordinated government and industry action is needed — now — if catastrophe is to be avoided,” CAPA said. Otherwise, “emerging from the crisis will be like entering a brutal battlefield, littered with casualties,” it said.
Qantas’s shares were down 5.3% to AUD 2.86 by 1:53 AM ET (05:53 GMT). The stock has lost 60% this year.
Related Articles
Australian regulator files lawsuit against CBA unit Colonial First State Investments
Hong Kong Stocks Below Liquidation Value Show Fear of Recession
Depositors Staying Put Is Key to India’s Biggest Bank Rescue