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Airlines may suffer $100b loss

By Kong Wenzheng | China Daily Global | Updated: 2020-03-12 09:33
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A traveler wears a mask in John F Kennedy International Airport in New York, US, amid coronavirus reports, March 11, 2020. [Photo/Agencies]

Revenues to take hit

US airline Southwest Airlines told investors its revenues will take a $200 million to $300 million hit.

UK airline Flybe filed for bankruptcy last week, with its leadership admitting that the impact of the outbreak is part of the reason.

The way the outbreak was weighing on airlines "has a 9/11-like feel", said Gary Kelly, CEO of Southwest Airlines, on CNBC. It was "more fear" than an economically driven issue for travel in both situations, he said.

"Airlines are doing their best to stay afloat as they perform the vital task of linking the world's economies," said de Juniac.

British Airways, Virgin Atlantic and Hong Kong-based Cathay Pacific all have offered unpaid leave to their staff, with around 25,000 from Cathay taking the offer.

Airlines are among the worst performers in the stock market, with share prices collectively having fallen nearly 25 percent since the outbreak began, according to IATA.

"These are extraordinary times," said de Juniac. He suggested that the industry needs "consideration for relief on taxes, charges and (airport) slot allocation" as worldwide governments look to stimulus measures.

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