British Airways owner IAG sees coronavirus having only marginal impact on global travel
Reuters
Published Feb 05, 2020 07:41AM ET
British Airways owner IAG sees coronavirus having only marginal impact on global travel
By Alexander Cornwell
DOHA (Reuters) - The coronavirus epidemic will have a only a marginal impact on global travel demand and the airline industry is healthy enough to absorb any economic slowdown in China, the chief executive of British Airways parent IAG (L:ICAG) said on Wednesday.
Dozens of airlines have suspended flights to China in response to the worsening health emergency that has killed close to 500, nearly all in the country, while a meeting of international aviation officials in Singapore was cancelled.
"The aviation industry is very robust. We may see some marginal impact," IAG CEO Willie Walsh told reporters in Doha at a CAPA aviation summit.
British Airways has suspended flights between London Heathrow and Beijing and Shanghai, which Walsh said represented around 1% of the airline's capacity.
There had been no impact on the group's other airlines, including Ireland's Aer Lingus and Spain's Iberia, as they do not fly to China.
Walsh, who steps down in March, said he did not expect the virus to deter people from travelling. Asked if the industry was healthy enough to absorb a downturn in China's economy, he said: "without question" adding that airlines were more capable of responding to economic shocks than in the past.
Qatar Airways, which owns a minority stake in IAG, has also cancelled passenger flights to China, though its chief executive said that was because other countries had placed entry restrictions on those who had recently visited China.
Akbar al-Baker said that made it difficult to staff China flights because those staff would not be able to operate flights to some other countries for some time afterwards.
A global airline lobby, the International Air Transport Association said it was too early to say how much the virus would impact the industry this year but is confident of a recovery.
"This industry has demonstrated its ability to overcome these type of difficult events and overcome them successfully," Chief Executive Alexandre de Juniac told Reuters.
Get The News You Want
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.