SEOUL/SYDNEY (Reuters) - Airlines around the world sank deeper into crisis on Tuesday as the worsening coronavirus epidemic and Italy’s lockdown hammered passenger numbers, forced the cancellation of thousands of flights and led to the delaying of plane orders.
Some carriers face calamity, with Korean Air Lines warning the virus outbreak could threaten its survival after it scrapped more than 80% of its international capacity, grounding 100 of its 145 passenger aircraft.
“The situation can get worse at any time and we cannot even predict how long it will last,” Woo Kee-hong, the president of South Korea’s biggest airline, said in a memo to staff that summed up the turmoil facing the industry.
“But if the situation continues for a longer period, we may reach the threshold where we cannot guarantee the company’s survival.”
Australia’s Qantas Airways said it would also cut its international capacity, by nearly 25% over the next six months, and delay an order for Airbus A350 planes due to a plunge in demand that industry chiefs estimate could hit airlines’ revenue by up to $113 billion this year.
Qantas said it could no longer provide guidance on the financial impact of the coronavirus, which it had estimated on Feb. 20 could hit underlying earnings (EBIT) by up to about $98 million this financial year. Its CEO and chairman will take no salary, managers will receive no bonuses and all staff are being encouraged to take paid or unpaid leave.
Leading U.S. airlines American and Delta suspended their 2020 financial guidance and took drastic further measures to combat the impact of the coronavirus.
Delta said it had
