Global air travel is expected to decline for the first time since 2009.
United Airlines and JetBlue Airways announced on March 4 temporary reductions in their domestic flight schedules, the latest move by US airlines related to rising travel concerns during the coronavirus outbreak. These cuts could carry through until May as US-based airlines are buckling down to reduce overhead costs. Carriers, including American, Alaska, Delta, JetBlue, and United, are also waiving some change and cancellation ticket fees for both domestic and international flights, as people reassess their travel plans.
These are the latest airline updates as of March 5, including fee waivers, refunds, reduced flights, and the dates they currently extend to:
According to the International Air Transport Association, demand for global air travel will decline for the first time since 2009 and airlines could lose up to $113 billion in revenue if Covid-19 continues — a forecast that suggests the outbreak could disrupt the industry as significantly as the Great Recession. Already, conferences and sporting events have been put on hold, and high-profile companies are taking precautions to limit employee travel.
Since January, airlines have been reducing service and offering waivers to travelers to mainland China, but with the virus’s ongoing spread, more and more passengers are hesitant to board a plane. British airlines have also canceled hundreds of flights throughout March.
As I previously reported, the travel industry is usually hit the hardest by pandemic threats. People are choosing to not travel, and politicians in cities and countries around the world are clamoring to secure their borders against the threat of a spreadable disease. During the 2003 SARS outbreak, which affected over 8,000 people, stocks of US airlines dropped more than 30 percent (as did the economy overall), Barron’s reported.
Austin Horowitz, senior aviation management consultant at the global consulting firm ICF, previously told me that the financial effects of a major flight suspension “would not be much greater than people electing not to travel” since airlines are “already losing a significant number of passengers because people are not traveling voluntarily.”
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Author: Terry Nguyen
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