From airlines to shipping giants, companies around the world are grappling with falling demand from the coronavirus outbreak
) said on Thursday it will ground the equivalent of 18 planes, freeze recruitment and ask its 30,000 staff to use up annual leave as it grapples with falling demand from Asia due to the coronavirus epidemic.
The carrier estimated the coronavirus would result in a A$100 million to A$150 million hit to underlying earnings before interest and tax for the financial year, accounting for capacity adjustments and lower fuel costs. Capacity cuts of 15% in Asia, 2.3% in the domestic market and 5% between Australia and New Zealand were the equivalent of grounding 18 planes, impacting 700 full-time roles, the airline said.
“Overall, the 1H20 result was solid, and despite the impact of coronavirus to 2H20 PBT, this is a short term impact and the recent share price weakness accounts for all of this impact without the benefit of lower oil pricing in FY21,” Jefferies analyst Anthony Moulder said in a note. Joyce said Qantas expects to make a final decision next month on plans to order up to 12 Airbus SE A350-1000 planes capable of the world’s longest commercial flights from Sydney to London.
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