By Alex Ho
Investing.com - Qantas Airways Ltd (ASX:QAN) said on Tuesday that it is cutting its international capacity by about 90% until at least the end of May as the coronavirus outbreak continued to worsen.
The slash in international flights was up from a 23% reduction announced last week. It was the airline’s fourth round of reductions in less than a month. Domestic capacity will also be cut by around 60%, the company said.
Qantas added that it had suffered a “precipitous decline in demand” and any rebound could be months away.
Sydney-based consultancy CAPA Centre for Aviation warned in a statement this week that the virus pandemic could potentially bankrupt most airlines globally by the end of May if governments and authorities do not take coordinated steps to avoid such a situation.
“Coordinated government and industry action is needed — now — if catastrophe is to be avoided,” CAPA said. Otherwise, “emerging from the crisis will be like entering a brutal battlefield, littered with casualties,” it said.
Qantas’s shares were down 5.3% to AUD 2.86 by 1:53 AM ET (05:53 GMT). The stock has lost 60% this year.