Corona effect: Airlines cut flights, jobs
The airline industry is facing the brunt of the rapid scale at which the is grappling with Covid-19 outbreak, as airlines made unprecedented cuts to flights, costs and staffing on Monday. The contagion has led to several nations resorting to lockdowns and new travel restrictions have hit more major routes. For example, Spain declared a state of emergency & Germany advised citizens against non-essential trips abroad; the United States extended travel restrictions to Britain and Ireland, while Australia and New Zealand began requiring all travellers to self-isolate.
“It is now clear that the coronavirus is by far the biggest crisis in the history of aviation,” Finnair Chief Executive Topi Manner told reporters. The carrier has declared a 90% capacity reduction and its second profit warning in three weeks. Shares in British Airways parent IAG, easyJet and Air France-KLM sank again as they scrapped most flights for the coming weeks. Similarly, Norwegian Air on Monday laid off 90% of its workforce and cancelled 85% of flights; while the Italian government prepared to take control of Alitalia with another cash injection of 600 million euros.