Airlines slash fares as coronavirus hits flights
International business class fares are being sold for as little as $529 as virus sees demand plummet.
International Air Transport Association analysis showed a potential 13 per cent loss of passenger demand for carriers in the region, amounting to an 8.2 per cent decline in travellers year on year.
Worldwide passenger revenues were tipped to fall 5 per cent, costing airlines outside of the Asia-Pacific region more than $2bn.
Plummeting demand has already resulted in hundreds of flight cancellations throughout the region, with services to Japan, Singapore, Vietnam, Malaysia and Thailand reduced, as well as to China and Hong Kong.
On Thursday, Qantas also pared back flights to New Zealand and within Australia and warned it would “cut deeper” if travel restrictions affecting demand continued.
At the same time, the Flying Kangaroo sought to stimulate bookings with the offer of double status credits for all flights booked before Tuesday.
A Qantas spokesman said such offers normally generated enormous interest from frequent flyers, and it was the first time in more than a year the airline had done a double status credits deal.
Low-fares partner Jetstar launched a new weekend sale with prices on domestic routes as low as $45 one way, and business-class fares to Bali from $529 one way.
Virgin Australia, which is preparing to begin its new service from Brisbane to Tokyo next month, has reduced fares on the route to $689 return and business class for $3399.
Singapore Airlines is also offering business-class deals from Australia to Tokyo for around $3600, and Air New Zealand is doing a $900 return fare from Sydney to Los Angeles.
Jetstar has a $611 return fare for Sydney-Honolulu, and return flights to London are available with Royal Brunei for $1094.
Flight Centre spokesman Haydn Long said demand for outbound travel was generally softer than a year ago but that was more to do with subdued consumer confidence than the coronavirus.
On Thursday Qantas announced cuts to 16 per cent of its Asia capacity, and 6 per cent of trans-Tasman flights, with an impact on 700 full-time roles within the airline.
Australian and International Pilots Association president Mark Sedgwick said there was some concern among members about the number of flights being cancelled, and having to take leave.
“But we will work through that,” Mr Sedgwick said.
“Most of our people have been in the airline industry long enough to see these events come and go.”
He also addressed comments by Qantas CEO Alan Joyce around pay negotiations for pilots to fly ultra-long-range Project Sunrise flights.
Mr Joyce said more progress had been made on negotiations since Qantas revealed it would employ a new group of pilots to operate the flights if it could not strike a deal with its own workers.
“That rhetoric is unhelpful and Qantas is being poorly advised in that respect,” Mr Sedgwick said.
“The travelling public values the Qantas pilots the company has now and so should Qantas.
“Having said that, we are a committed to a negotiated outcome. The win-win is the best option for Qantas.”
He said the sticking points for pilots considering a new long-haul agreement included the absence of a mature fatigue risk management system and a lack of scientific data.
“The 23.5-hour duty day is a big one for us to make sure the provisions around it are completely safe,” Mr Sedgwick said.
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Airlines have begun slashing airfares in an effort to stimulate travel amid warnings the coronavirus could wipe $42bn from earnings in the Asia-Pacific region this year.