Uncategorized

Coronavirus impact: Qantas to lose $99m by May

todayAugust 16, 2021 4

Background
share close

20th Feb 2020 | Emmanuel Kojo

Qantas has warned of a severe financial impact as the potentially deadly coronavirus diminishes demand for travel in Asia.

The Australian airline said the outbreak would cost it up to 99million dollars as it cuts flights to Asia by 15% until at least the end of May.

To avoid job losses the company also plans to freeze recruitment and ask workers to use up leave.
It comes amid wider concerns of the impact on the global economy.

Qantas estimated that the coronavirus would result in a 100m -150m Australian dollar hit for the financial year, once it had accounted for cutting flights.

In a statement signed by Qantas’ chief executive, Alan Joyce said: “Coronavirus resulted in the suspension of our flights to mainland China and we’re now seeing some secondary impacts with weaker demand on Hong Kong, Singapore and to a lesser extent Japan.”

“We’ve also seen some domestic demand weakness emerging, so we’re adjusting Qantas and Jetstar’s capacity in the second half,” he added.

Qantas has suspended flights from Sydney to Shanghai, the cut capacity to Hong Kong and ended its Sydney to Beijing route earlier than expected after the Australian government-imposed restrictions on travelers from mainland China.

Can Coronavirus affect the global economy?

Meanwhile, the International Monetary Fund has warned over the impact of the virus, saying that a further spread to other countries could disrupt the “highly fragile” world economic recovery.

In a document prepared for this weekend’s G20 meeting of finance ministers and central bankers, the global lender mapped out the risks facing the global economy, including the coronavirus, saying, “the coronavirus, a human tragedy, is disrupting economic activity in China as production has been halted and mobility around affected regions limited.

“A wider and more protracted outbreak or lingering uncertainty about contagion could intensify supply chain disruptions and depress confidence more persistently, making the global impact more severe,” it added.

Source: vaultzmag

Written by: Adwoa Sasu

Rate it

Previous post

Uncategorized

Coronavirus outbreak: Ethiopian Airlines assures safety of Ghanaian passengers

19th Feb 2020 | Emmanuel Kojo The Management of Ethiopian Airlines has re-assured its Ghanaian clients that it has stepped up passenger screening and aircraft disinfection process at the Addis Ababa Bole International Airport per the World Health Organisation (WHO) standards. The recent Coronavirus outbreak has raised concerns among the traveling public and airlines around the world, which tend to deter people from traveling overseas to protect themselves from possible infection. Despite these concerns, the WHO recommended that imposing a travel ban […]

todayAugust 16, 2021 1

Post comments (0)

Leave a reply

Your email address will not be published. Required fields are marked *

0%