Qantas cuts more flights as coronavirus cripples travel

Qantas is making further cuts to flights as demand continues to wither in response to the widening coronavirus crisis.

Brisbane’s airport is warning passengers to take precautions against the coronavirus. Picture: AAP

Qantas is making further cuts to its network as demand for flights continues to wither in response to the widening coronavirus crisis.

From next week until the end of March, more than 20 return flights on Asia and trans-Tasman routes will be cancelled.

These include eight between Sydney and Hong Kong, five between Sydney and Sapporo, five between Melbourne-Auckland, and others on Brisbane-Tokyo, Melbourne-Tokyo and Sydney-Osaka routes.

Customers with existing bookings who are directly affected will be contacted and offered alternative flights.

The latest reductions follow on from a 16 per cent cut in capacity on services to Asia, and 6 per cent decrease in trans-Tasman flights.

Pilots have reported noticeably fewer passengers in recent weeks on all international services, and Qantas indicated the impact of the coronavirus on overseas travel demand was evolving.

“We’re monitoring closely. Further changes are expected,” said a Qantas statement.

The cuts follow an updated outlook by the International Air Transport Association, describing the impact of COVID-19 on airlines as on par with the global financial crisis.

Analysis based on the “extensive spread” of coronavirus, showed demand in the Asia-Pacific was expected to fall 23 per cent, costing carriers in the region $75bn.

Globally, the impact was tipped to be as much as $170bn, which IATA director general and CEO Alexandre de Juniac said amounted to a “crisis”.

“Many airlines are cutting capacity and taking emergency measures to reduce costs,” he said. “Governments must take note. Airlines are doing their best to stay afloat as they perform the vital task of linking the world’s economies. As governments look to stimulus measures, the airline industry will need consideration for relief on taxes, charges and slot allocation. These are extraordinary times.”

Calls for changes to airport slot rules have become more urgent after it was revealed some British carriers were operating flights without any passengers at all, due to controversial “use it or lose it” regulations governing space at European airports.

In Australia, only Sydney Airport is governed by slot rules, but the federal government is considering suspending those, at the request of IATA and some international airlines.

Qantas shares have today hit a two-year low on the Australian Securities Exchange, falling 4.2 per cent in morning trade to $4.85.

Virgin Australia shares have also slumped further to 9.1 cents, a new all time low for the carrier which is the subject of increasing speculation over its ability to survive the COVID-19 crisis.

The airline has previously announced cuts to capacity but was intending to go ahead with its new Brisbane-Tokyo (Haneda) route from March 29.