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Qantas warns of a $99Mn financial impact due to coronavirus outbreak

Author : Pankaj Singh | Published Date : 2020-02-21 

While most of the coronavirus instances have been observed in China, the global aviation industry is seen to be cautious about the dangerous virus. A new report from Qantas Airways Limited, an Australian airline has put some estimated numbers regarding the financial impacts of the coronavirus, claiming the outbreak may cost it up to USD 99 million as it cuts 15% flights to Asia until the end of May.

To prevent job losses, the airline is planning to freeze recruitment and ask employees to use up leave. It comes amidst broader concerns of the effect on the global economy.

Alan Joyce, Chief Executive Officer of Qantas, states that coronavirus caused the suspension of airline flights to China. The airline also witnessing secondary impacts with lesser demand on Singapore, Hong Kong, and to a minor extent Japan.

Reportedly, Qantas has halted Sydney to Shanghai flights, cut capacity to Hong Kong and stopped its Sydney to Beijing path prior than expected after the government of Australia enforced restrictions on passengers from China.

Meanwhile, the International Monetary Fund has flagged concerns over the effect of coronavirus outbreak, saying that a further spread to other nations could impact the fragile world economic recovery.

Xi Jinping, President of China, said that the nation could still meet its economic growth in 2020 even after coronavirus outbreak. However, IMF note casts a doubt on the President’s statement saying the coronavirus outbreak is disturbing economic activity in mainland China as it significantly impacted the production and mobility around affected regions.

Moreover, protracted and wider outbreak or persistent uncertainty about contagion may hamper the supply chain landscape and weaken confidence more persistently, creating severe global impact. As per reports, the coronavirus outbreak, until now, has killed over 2,100 people and infected around 75,000 in China.

Source Credit - https://www.bbc.com/news/business-51499778

About Author

Pankaj Singh

Pankaj Singh

Endowed with a post graduate degree in management and finance, Pankaj Singh has been a part of the online content domain for quite a while. Having worked previously as a U.K. insurance underwriter for two years, he now writes articles for fractovia.org and other online portals. He can be contacted at- [email protected] | https://twitter.com/PankajSingh2605

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