Air France and KLM are taking steps to cut back on discretionary costs in a bid to offset the expected impact of the COVID-19 virus on their operations.
The airline industry is generally in good shape to withstand the financial impact of the COVID-19 coronavirus, but it is yet to be seen if this outbreak will follow the same pattern as previous similar outbreaks.
Qantas expects to take a major financial hit from capacity reductions related to the COVID-19 outbreak, although the airline remains on track to make some significant aircraft order moves this year.
As airlines grapple with capacity shortages created by the Boeing 737 MAX grounding or a sudden over-supply because of COVID-19-related schedule reductions, lessors are supporting their mitigation plans, including matching customers in both categories and moving aircraft between them.
As airlines grapple with capacity shortages created by the Boeing 737 MAX grounding or a sudden over-supply because of COVID-19-related schedule reductions, lessors are supporting their mitigation plans, including matching customers in both categories and moving aircraft between them.
Air Canada is hopeful that challenges posed by the Boeing 737 MAX grounding and COVID-19 outbreak in China will be resolved by the second half of 2020, optimistic time lines that assume worst-case scenarios regarding both crises will not come to pass.
Reeling from the decline in visitorship and traffic from China because of the COVID-19 outbreak, governments in the region are rolling out measures to help airlines suffering from the slump.
The coronavirus outbreak and trade tensions with the US may mean that China has sunk down the list of attractive business destinations for the time being, but Western MRO companies remain committed to a country where many have already accumulated substantial experience.
The COVID-19 outbreak has already led to an estimated $4 to $5 billion reduction in gross operating revenues for airlines across the globe, according to ICAO.
