(TAN): As the coronavirus scare continues to loom large, pushing leisure and corporate travellers to cancel trips, airlines are witnessing a dearth of demand, reports said.
Planes are not just getting emptier, airline shares too are reportedly tumbling to new lows. According to reports, the S&P 500 index of the largest carriers has gone down nearly 30% this year.
International Air Transport Association, the trade association for the world’s airlines, recently said global airlines could face a combined revenue loss of USD 113 billion if the coronavirus continues to spread and disrupt travel, as per reports.
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While some airlines are offering employees unpaid leave, others are reducing the number of flights to cut costs as the virus spreads all over the world – Emirates has asked staff to take unpaid leave for up to a month, and Cathay Pacific asked employees to go on an unpaid leave of three weeks, reports said.
The decline in air travel demand has also led to the rise in another aspect; airlines are reportedly slashing their fares.
A search on Google Flights showed New York to Paris return trip, starts from just USD 302. The flight, offered by Norwegian, is a direct service, for flying from March 26 to March 30. TAP Air Portugal is offering a round trip between the same destinations with one stop for USD 286.
Round trips from New York John F. Kennedy Airport to Rome start from USD 469 on United States-based United Airlines, flying between March 31 and April 7. On the other hand, Norwegian offered a nonstop service between the same destinations starting from USD 298 on Google.
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