KUALA LUMPUR: The overall travel suspension from or to China caused by the coronavirus outbreak will adversely impact Asian airlines’ yields and profitability, which are already depressed. Other airlines that have done the same included Singapore Airlines, Lion Air, Air Seoul, Air India, Air France, British Airways and Lufthansa. “Cutting back (frequencies) at short notice can impact profitability,” independent analyst Brendan Sobie told the New Strait Times (NST). Sobie cautioned that there would be a significant impact on revenues and profitability for all of the main Asian airlines in the first half of this year. “Sustain demand usually come from domestic passengers travelling during festive seasons, prompting airlines to continue increase flight frequencies,” he told the NST.

Source: New Strait Times February 06, 2020 04:07 UTC