(Feb 18): Singapore Airlines will cut more flights across its global network through May as the outbreak of the novel coronavirus discourages people from traveling.
The carrier and its SilkAir unit will reduce flights to cities including New York, London, Frankfurt, Tokyo and Sydney, according to a statement on its website Tuesday. The company warned Friday that it faces “significant” challenges due to the virus and will make adjustments to its services when needed.
See: SIA 3Q earnings up but warns of significant challenges ahead
Airlines around the world have cut flights to China and other destinations, with Hong Kong-based rival Cathay Pacific Airways reducing its global capacity by 30%. Countries including the US and Singapore have issued restrictions on people traveling from China in an effort to contain the spread of the virus, which has claimed nearly 1,900 lives, primarily in Hubei province. Singapore has 77 confirmed cases of infection, but no deaths.
Singapore Airlines on Monday announced several changes in management that will take effect from April 1. Last week, the company said net income in the fiscal third-quarter rose 11% from a year earlier to $314.8 million.
See: SIA Group reports 1.4 ppt increase in overall passenger load factor to 84.5%, announces reshuffling of senior management
The carrier won’t match that strong quarterly performance because of the virus, as well as fuel-hedging and potential credit losses, Bloomberg Intelligence analysts James Teo and Chris Muckensturm wrote in a report.
