Airlines cut flights o NZ

Qantas will cut flights to New Zealand by 6 per cent on three routes while subsidiary Jetstar will cut flights by 5 per cent.

Qantas Group announced the changes yesterday as part of temporary reductions to flights across Asia in response to a drop in demand due to coronavirus.

There would be cancellations on Qantas’ Sydney-auckland, Melbourne-auckland and Brisbane-christchurch routes, it said. The Australian flag carrier made the announcement with its halfyear financial results, where the impact of coronavirus was estimated at A$100 million (NZ$105M) to $150m in profit before tax for the full 2020 financial year. Softer fuel prices had reduced the impact, the airline said.

The novel coronavirus, now dubbed Covid-19, which is believed to have originated from a live animal market in Wuhan, China, has infected more than 75,000 people globally and killed more than 2000, according the World Health Organisation.

It has had a huge impact on global air travel and prompted numerous airlines to stop flying to China. In order to stop the spread of the virus some nations, including New Zealand, are refusing entry to foreign travellers who have come from mainland China, dealing a massive blow to Chinese airlines in particular.

Qantas chief executive Alan Joyce said the airlines were taking action to limit exposure to softening markets. ‘‘Coronavirus resulted in the suspension of our flights to mainland China and we are now seeing some secondary impacts with weaker demand in Hong Kong, Singapore and, to a lesser extent, Japan. Other key routes, like the United States and Britain, have not been impacted.’’

Weakness was emerging in domestic demand so Qantas and Jetstar capacity was being adjusted for the second half of the 2020 financial year, he said.

This would also include some cancellations.

Customers with existing bookings who were affected by the reductions would be contacted directly and offered alternatives.

Qantas posted an 2020 interim net profit after tax of $445m for the six months to December 31 – 4 per cent down on the $463m profit in the same period in 2018.

Qantas capacity to Asia will reduce by 15 per cent from now until at least the end of May and its only route to mainland China (Shanghai) will remain suspended for the same period.

The sudden capacity reduction will have an impact on staff, which the airline was trying to minimise through annual leave.

On Tuesday, Air NZ said it was reducing its capacity to Hong Kong and further reducing its Shanghai service due to the impact of coronavirus on customer demand.

Hong Kong services, currently operated by Cathay Pacific as Air NZ gets its Rolls-royce engines repaired, will resume on Air NZ aircraft from March 29 and will be adjusted from seven return services per week to four return services per week from April 21 to May 31. Its Shanghai route is currently suspended until March 29.

Air NZ will announce its 2020 interim result on February 27.