More airlines drop flights to China as virus spreads

BANGKOK >> British Airways halted all flights to China and American Airlines suspended Los Angeles flights to and from Shanghai and Beijing as efforts to contain a new virus intensifies.

The coronavirus has now infected more people in China than were sickened in the country by the SARS outbreak in 2002-2003. The number of confirmed cases jumped to 7,711, surpassing the 5,327 in mainland China from SARS. The virus has killed 170 people.

The British and U.S. carriers on Wednesday joined several Asian carriers that are either suspending or significantly cutting back service there as fears spread about the coronavirus.

Air India and South Korean budget carrier Seoul Air are also halting all flights to the country, and Indonesia’s Lion Air plans to do the same. Other carriers including Finnair, Hong Kong-based Cathay Pacific, and Singapore-based Jetstar Asia are slashing service.

Beyond disrupting travel, the move is heightening concerns about the broader economic impact of the virus outbreak. Hotels, airlines, casinos and cruise operators are among the industries suffering the most immediate repercussions, especially in countries close to China. The crisis has also begun to ripple through U.S. companies with operations in China.

In a conference call Tuesday, Apple CEO Tim Cook said the company’s suppliers in China have been forced to delay reopening factories that closed for the Lunar New Year holiday until Feb. 10.

Isaac Larian, CEO of MGA Entertainment, the maker of the popular LOL dolls, said he’s nervous that many workers won’t come back to factories and they may close.

“I’m very concerned about all consumer goods and retail business in 2020,” Larian said.

Starbucks’ shares tumbled 2.5% Wednesday after the company said it will take a financial hit from store closures in China. The Seattle-based coffee giant said more than half of its 4,292 stores in China are now closed. China represented 10% of Starbucks’ revenue during its most recent quarter.

By contrast, McDonald’s shares were up 2% Wednesday after the company said the financial impact so far has been minimal. McDonald’s President and CEO Chris Kempczinski said the Chicago-based company has closed several hundred restaurants, including all of its properties in Hubei province. But 3,000 remain open elsewhere in the country. China accounts for 4-5% of McDonalds’ revenue, he said.

British Airways said it was immediately suspending all flights to and from mainland China after the U.K. government warned against unnecessary travel to the country amid a virus outbreak.

The airline operates daily flights from London’s Heathrow Airport to Shanghai and Beijing. It took the measure a day after Britain’s Foreign Office updated its travel advice on China, warning against “all but essential travel” to the mainland, not including Hong Kong and Macao.

The U.S. has not put into place travel restrictions, though Department of Health and Human Services Secretary Alex Azar said “it’s important to not take anything off the table,” when he was asked about that potential.

American Airlines said Wednesday it will suspend flights between Los Angeles and both Shanghai and Beijing from Feb. 9 through Mar. 27. The airline cited “the significant decline in demand for travel to and from China.” Flights from Dallas-Fort Worth will continue, the airline said.

China has cut off access to the central city of Wuhan, epicenter of the outbreak, and 16 other cities to prevent people from leaving and spreading the virus further. That has trapped more than 50 million people in the most far-reaching disease control measures ever imposed. The outbreak has infected more than 6,000 on the mainland and abroad.