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Coronavirus: Qantas cuts almost quarter of flights Coronavirus: Korean Air fighting for 'survival'
(about 7 hours later)
Australia's Qantas airline is making deeper cuts to its flights, with Asia and the US hit the hardest. Korean Air has warned the coronavirus outbreak could threaten its survival in a memo sent to employees.
South Korea has been hit hard from travel restrictions aimed at curbing the spread of the virus.
Its national carrier has cut more than 80% of its international capacity while encouraging employees to take voluntary leave.
In the memo, Woo Kee-hong, Korean Air's president said the airline couldn't predict how long the crisis would last.
"But if the situation continues for a longer period, we may reach the threshold where we cannot guarantee the company's survival," he said in the memo, which was seen by Reuters.
A spokesman for Korean Air told the BBC the purpose of the internal memo was "to encourage employees and ask for understanding to overcome the crisis together".
"We have gone through numerous difficulties for the past 51 years, and I'm confident that we will overcome this crisis together," he said.
The airline industry has been struggling with a sharp downturn in passengers numbers with travel restrictions in place and an unwillingness to fly during the virus outbreak.
The International Air Transport Association, a trade body, estimates the virus could reduce passenger revenue globally this year by between $63bn and $113bn.
Carriers across the world have been introducing hiring freezes and asking staff to take unpaid leave along with grounding planes.
The latest is Australia's Qantas airline which is making deeper cuts to its flights, with Asia and the US routes hit the hardest.
The company said it would reduce international flights by nearly 25% as it sees demand fall from passengers worried about the coronavirus.The company said it would reduce international flights by nearly 25% as it sees demand fall from passengers worried about the coronavirus.
Qantas and its budget airline Jetstar will reduce operations for the next six months.Qantas and its budget airline Jetstar will reduce operations for the next six months.
It is the latest carrier to make cutbacks, aimed at weathering the storm from a sharp drop in passengers. It will ground eight of its 10 double-decker Airbus A380s and replace them with smaller planes while reducing the frequency of flights.
Qantas will ground eight of its 10 double-decker Airbus A380s and replace them with smaller planes while reducing the frequency of flights.
"We expect lower demand to continue for the next several months, so rather than taking a piecemeal approach we're cutting capacity out to mid-September," Qantas chief executive Alan Joyce said."We expect lower demand to continue for the next several months, so rather than taking a piecemeal approach we're cutting capacity out to mid-September," Qantas chief executive Alan Joyce said.
Mr Joyce said he will forgo some of his A$24m (£12m) salary while other Qantas executives will take a 30% pay cut during the downturn.Mr Joyce said he will forgo some of his A$24m (£12m) salary while other Qantas executives will take a 30% pay cut during the downturn.
The widespread airline cuts follow the spread of the coronavirus into Europe and the US which has resulted in a significant drop in demand. UK-based Flybe was the first casualty of the coronavirus, going into administration last week. Analysts warn others could follow.
US carriers have been slashing flights, following the lead from Asian and European airlines. As the industry struggles, it is introducing hiring freezes and asking staff to take unpaid leave along with grounding planes.
The International Air Transport Association, a trade body, estimates the virus could reduce passenger revenue globally this year by between $63bn and $113bn.
UK-based Flybe was the first casualty, going into administration last week. Analysts warn others could follow.