AirAsia X and Lion Air have reportedly stopped all payments for A320 leased aircraft. The coronavirus also attacks the finances of airlines!
AirAsia is cancelling its domestic flights to/from the Ninoy Aquino International Airport in Manila from 15 March to 14 April 2020, in compliance with the Philippine government’s directive imposing travel restrictions due to the current public health situation.
Alaska Air Group will immediately reduce capacity for April by at least 10% and May 2020 by at least 15%; pursue additional borrowing of approximately US$500 million; suspend at least $300 million of our capital spending; suspend share repurchases; offer employees unpaid leaves of absence, and freeze hiring.
Alsie Express of Denmark halts operations until 13 April 2020 due to travel restrictions. The carrier says it will survive.
ANAC (the Brazilian CAA) suspends airport slots rules until October 2020, allowing airlines to adjust capacity at will amid the downturn.
Azul is reducing consolidated capacity by 20%-25% in March and by 35% to 50% in April 2020 and beyond. As of 16 March, all international flights, except flights leaving from Sao Paulo Campinas, will be suspended. Some aircraft will be grounded, and all new aircraft deliveries will be suspended.
Cathay Pacific and subsidiary Cathay Dragon cut March and April 2020 flight capacity by 65% — HK Express by 50% — with 90% of flights to Mainland China suspended. Aircraft are being down-gauged to meet demand.
Cathay Pacific said it expects a “substantial” loss in fiscal 1H 2020 as the impact of the coronavirus outbreak takes it toll. The 1H is expected to be “extremely challenging financially”.
Cathay Pacific is in talks with Boeing and Airbus over possible deferral of aircraft deliveries in 2020, as the coronavirus outbreak impacts its fiscal performance.
Croatia Airlines has suspended international flights from airports in Split, Dubrovnik and Rijeka as a result of the coronavirus outbreak.
Cyprus Airways announced the suspension of all planned flights from 17 March until 30 April 2020, following additional measures announced by the Cypriot government to prevent the spread of the coronavirus pandemic.
Delta Air Lines and American Airlines are both in talks with the US government about potential assistance. Delta and its pilots’ union have agreed to let the carrier offer partially paid time off for aviators through June 2020, and possibly longer, as coronavirus devastates travel demand.
Delta will cut planned Capital Expenditure by US$2 billion in 2020. The cuts will fall primarily on aircraft deliveries, as the carrier will defer new deliveries and delay aircraft modifications and IT initiatives in order to preserve cash. Overall capacity will be reduced in the next few months by 40%, flying to Europe will be eliminated, and up to 300 aircraft will be parked. The situation is fluid and likely to be getting worse. Talks with the government for support are in progress.
EasyJet has undertaken further significant cancellations. These actions will continue on a rolling basis for the foreseeable future and could result in the grounding of the majority of the fleet. Financial guidance for fiscal 20 has been postponed.
Hawaiian Airlines to temporarily suspend nonstop service between Honolulu and Sydney and Auckland starting late March 2020 due to new government entry restrictions.
Hawaiian will reduce flight capacity systemwide in April and May 2020 by 8-10% and 15-20% respectively, in response to declining demand caused by the pandemic.
IAG is grounding surplus aircraft, reducing and deferring capital spending, cutting non-essential and non-cyber related IT spend, freezing recruitment and discretionary spending, implementing voluntary leave options, temporarily suspending employment contracts, and reducing working hours as part of further initiatives in response to this challenging market environment.
IAG now expects ASKs in 1Q 2020 to be reduced by around 7.5%, and at least 75% for April and May 2020.
IAG will keep Luis Gallego at the head of Iberia for the next few months to lead the response in Spain, while CEO Willie Walsh, who was expected to retire, will continue to act as Group chief executive and Javier Sanchez will remain in place as Vueling chief executive.
Icelandair has adjusted capacity of up to 30%. It is likely that the capacity will be reduced even further while such extensive travel restrictions are in effect and the situation might change quickly.
Japan Airlines to postpone the launch of service from Tokyo Narita to Bengaluru, scheduled to start 29 March 2020, due to the pandemic.
Jazeera Airways announces that its fleet of 14 aircraft has been placed at the disposal of the State of Kuwait to support its efforts to return Kuwaiti citizens to the country. The carrier also announces that all its departing and returning flights from and to Kuwait was suspended starting 13 March 2020.
Korean Air is hoping to use its passenger aircraft as freighters to help overcome the current crisis.
La Compagnie will cease operations from 13 March for 30 days in light of the US-EU travel ban. Furthermore, the launch of the seasonal New York – Nice service is being pushed to 01 June 2020.
Malaysia Airlines has warned that travel bans and plummeting demand around the world due to the coronavirus outbreak have put many global airlines at risk of going bankrupt including the loss-making national carrier.
S7 Airlines is considering restructuring the contracts of lease payments on the background of large-scale reduction of international flights due to the pandemic coronavirus.
Smartwings and sister carrier Czech Airlines will suspend all flights to/from the Czech Republic in response to government travel restrictions. Smartwings said it would ground up to 23 planes, half of its fleet.
TAAG will suspend flights from Luanda to Porto, due to increased spread of new coronavirus in the European country.
Thai Airways International forced to cut its flights by 30% resulting in the cancellation of 2,100-2,500 flights a month.
Turkish Airlines cancelled all Mainland China, Iran, Italy, South Korea, Nakhchivan, Saudi Arabia, Mongolia, and Israel flights, as well as some European flights.
Virgin Australia expects capacity for the six months through 30 June 2020 will be down by 6% year-over-year due to the coronavirus impact The capacity cut will increase to 7.7% for the following six months through 31 December 2020.
Wideroe to lay off 1,000 employees to cope with the fall in demand.
Madagascar to suspend air links with Europe, Mauritius and Reunion to help fight the pandemic.
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