Tag Archives: Coronavirus

Axios: Coronavirus rattles travelers — and airlines

From Axios:

“Not since the aftermath of 9/11 has there been such a fear of flying.

Why it matters: The novel coronavirus has the airline industry bracing for the worst downturn since the Great Recession. Even though the government says it’s safe to fly domestically, the drumbeat of news about COVID-19 has cautious employers stifling business travel and worried families rethinking their summer vacation plans.

Driving the news: Southwest Airlines CEO Gary Kelly said Thursday the sudden drop in domestic air travel has a 9/11-like feel.”

  • “We could discount prices tomorrow and it wouldn’t do any good,” said Kelly.”

Read the full article.

Airlines and the travel industry could be the most vulnerable industries due to the coronavirus (COVID-19)

CDC Confirms Possible Instance of Community Spread of COVID-19 in U.S.

The Centers for Disease Control and Prevention (CDC) has confirmed an infection with the virus that causes COVID-19 in California in a person who reportedly did not have relevant travel history or exposure to another known patient with COVID-19.

At this time, the patient’s exposure is unknown.  It’s possible this could be an instance of community spread of COVID-19, which would be the first time this has happened in the United States. Community spread means spread of an illness for which the source of infection is unknown. It’s also possible, however, that the patient may have been exposed to a returned traveler who was infected.

This case was detected through the U.S. public health system — picked up by astute clinicians. This brings the total number of COVID-19 cases in the United States to 15.

The federal government has been working closely with state, local, tribal, and territorial partners, as well as public health partners, to respond to this public health threat. Unprecedented, aggressive efforts have been taken to contain the spread and mitigate the impact of this virus.

This is a rapidly evolving situation. CDC will continue to update the public as circumstances warrant.  For more information about COVID-19 visit www.cdc.gov/covid19.

Global case numbers are reported by the World Health Organization in their Coronavirus disease 2019 (COVID-19) situation reportexternal icon. For U.S. information, visit CDC’s coronavirus disease 2019 (COVID-19) in the U.S.

Locations with Confirmed COVID-19 Cases

  • China
  • Hong Kong
  • Macau
  • Taiwan
  • Afghanistan
  • Algeria
  • Australia
  • Austria
  • Bahrain
  • Belgium
  • Brazil
  • Cambodia
  • Canada
  • Croatia
  • Egypt
  • Finland
  • France
  • Germany
  • India
  • Iran
  • Iraq
  • Israel
  • Italy
  • Japan
  • Kuwait
  • Lebanon
  • Malaysia
  • Nepal
  • Oman
  • Philippines
  • Russia
  • Sri Lanka
  • Singapore
  • Spain
  • Sweden
  • Switzerland
  • Thailand
  • The Republic of Korea
  • United Arab Emirates
  • United Kingdom
  • United States
  • Vietnam

Coronavirus disease 2019 (COVID-19) Situation Report – 37

HIGHLIGHTS

  • Four new Member States (Algeria, Austria, Croatia, and Switzerland) reported cases of COVID-19 in the past 24 hours. Algeria is the first Member State of the AFRO Region to report a case of COVID-19.
  • For the first time, since the onset of symptoms of the first identified case of COVID-19 on 8 December 20191, there have been more new cases reported from countries outside of China than from China.
  • The WHO Director-General provided opening remarks at the weekly Member State briefing on COVID-19 regarding ongoing and future WHO missions along with priorities for control of the outbreak.

From Public Health, England:

Category 1: Travellers should self-isolate, even if asymptomatic, and call NHS 111 to inform of recent travel. Go home or to your destination and then self isolate.

Category 2: Travellers do not need to undertake any special measures, but if they develop symptoms they should self-isolate and call NHS 111.

The guidance for Italy, Iran, Daegu or Cheongdo (Republic of Korea), Laos, Myanmar, Cambodia and Vietnam applies to individuals who returned from these specific areas on or after 19 February 2020.

Category 1 countries/areas Category 2 countries/areas
Wuhan city and Hubei Province (China, see map) Cambodia
Iran China*
Daegu or Cheongdo (Republic of Korea, see map) Hong Kong
Any Italian town under containment measures (see map) Italy: north* (see map)
Japan
Laos
Macau
Malaysia
Myanmar
Republic of Korea*
Singapore
Taiwan
Thailand
Vietnam

*Except areas of the country specifically referred to in Category 1.

Map of specified areas in China
Map of specified areas in China

See more detailed China map

Map of specified areas in Republoic of Korea
Map of specified areas in Republic of Korea

See more detailed Korea map

Map of specified areas in Italy
Map of specified areas in Italy

See more detailed Italy map

IATA: COVID-19 cuts demand and revenues – Asia carriers could lose $27.8 billion

The International Air Transport Association (IATA) announced that its initial assessment of the impact of the Novel Coronavirus 2019 outbreak (COVID-19) shows a potential 13% full-year loss of passenger demand for carriers in the Asia-Pacific region. Considering that growth for the region’s airlines was forecast to be 4.8%, the net impact will be an 8.2% full-year contraction compared to 2019 demand levels.

In this scenario, that would translate into a $27.8 billion revenue loss in 2020 for carriers in the Asia-Pacific region—the bulk of which would be borne by carriers registered in China, with $12.8 billion lost in the China domestic market alone.

In the same scenario, carriers outside Asia-Pacific are forecast to bear a revenue loss of $1.5 billion, assuming the loss of demand is limited to markets linked to China. This would bring total global lost revenue to $29.3 billion (5% lower passenger revenues compared to what IATA forecast in December) and represent a 4.7% hit to global demand. In December, IATA forecast global RPK growth of 4.1%, so this loss would more than eliminate expected growth this year, resulting in a 0.6% global contraction in passenger demand for 2020.

These estimates are based on a scenario where COVID-19 has a similar V-shaped impact on demand as was experienced during SARS. That was characterized by a six-month period with a sharp decline followed by an equally quick recovery. In 2003, SARS was responsible for the 5.1% fall in the RPKs carried by Asia-Pacific airlines.

The estimated impact of the COVID-19 outbreak also assumes that the center of the public health emergency remains in China. If it spreads more widely to Asia-Pacific markets then impacts on airlines from other regions would be larger.

It is premature to estimate what this revenue loss will mean for global profitability. We don’t yet know exactly how the outbreak will develop and whether it will follow the same profile as SARS or not. Governments will use fiscal and monetary policy to try to offset the adverse economic impacts. Some relief may be seen in lower fuel prices for some airlines, depending on how fuel costs have been hedged.

“These are challenging times for the global air transport industry. Stopping the spread of the virus is the top priority. Airlines are following the guidance of the World Health Organization (WHO) and other public health authorities to keep passengers safe, the world connected, and the virus contained. The sharp downturn in demand as a result of COVID-19 will have a financial impact on airlines—severe for those particularly exposed to the China market. We estimate that global traffic will be reduced by 4.7% by the virus, which could more than offset the growth we previously forecast and cause the first overall decline in demand since the Global Financial Crisis of 2008-09. And that scenario would translate into lost passenger revenues of $29.3 billion. Airlines are making difficult decisions to cut capacity and in some cases routes. Lower fuel costs will help offset some of the lost revenue. This will be a very tough year for airlines,” said Alexandre de Juniac, IATA’s Director General and CEO.

Role of Governments

Governments have an important role to play in this crisis:

  • Operations: Airlines have developed standards and best practices linked to the International Health Regulations (IHR) to manage effectively and efficiently in times of public health emergencies. Airlines, therefore, depend on governments to also follow the IHR so we have an effective global approach to containing the outbreak. “We have learned a lot from previous outbreaks. And that is reflected in the IHR. Governments need to follow it consistently,” said de Juniac.
  • Leadership: It is also important for governments to take leadership in shoring up their economies. The Singapore government, for example, is allocating SGD 112 million to provide financial relief to airlines and the aviation sector struggling to economically maintain connectivity. “Airlines and governments are in this together. We have a public health emergency, and we must try everything to keep it from becoming an economic crisis. Relief on airport costs will help maintain vital air connectivity. Other governments should take good note and act quickly,” said de Juniac.

Advice to Travelers

The WHO has not called for restrictions on travel or trade. Indeed, air transport plays a major role—bringing medical staff and supplies to where they are needed.

WHO has published extensive advice to travelers on its website. Passengers should be reassured that cabin air is filtered, that aircraft are cleaned in line with global standards, that key airports have implemented temperature screening for travelers and that airline staff and crew are trained to deal with the rare case of a passenger presenting with symptoms of infection.

“If you are sick, don’t travel. If you have flu-like symptoms, wear a mask and see a doctor. And when you travel wash your hands frequently and don’t touch your face. Observing these simple measures should keep flying safe for all,” said Dr. David Powell, IATA’s Medical Advisor.