Issue No. 757
The Covid-19 Crisis
Pushing Back: Inside This Issue
The alarm bells are ringing across the global airline industry. A coronavirus crisis that first decimated China’s travel market is now spreading elsewhere. Not only are people across the globe becoming warier of getting on airplanes. International commerce is feeling the impact as well, causing stock markets to swoon. Airlines are on edge as they await the ultimate severity of the crisis. Will it subside? Or will it get worse?
In times of great demand shocks, airlines already weak before the crisis are especially vulnerable. In this category are carriers like Virgin Australia, AirAsia X, and players in the brutally competitive Thailand market. The latest SAS results don’t instill confidence. On the other hand, IAG stands out as an industry champion. Honorable mention, meanwhile, goes to Mexico’s Volaris for a spectacular fourth quarter.
In the U.S., United lost confidence in its most recent financial guidance. Lufthansa, easyJet, and others expressed waning confidence through capacity cuts and other measures. Japan’s ANA, however, had enough confidence to order more Dreamliners.
It should be another eventful week for airlines, this one hopefully more uplifting than last.
"It’s at a time like this when we can prove to you that IAG has the ability to adapt, to withstand, to address anything that gets thrown at us."IAG CEO Willie Walsh
November 2019-January 2020
- SAS: -$91m; -8%
October-December 2019 (3 months)
- IAG: -$110m/$637m*; 12%
- AirAsia: -$92m; 10%
- AirAsia X: -$23m; -1%
- Bangkok Airways: $16m; -12%
- Nok Air: -$16m; -9%
- Avianca: -$378m/$20m*; 9%
- Volaris: $67m; 20%
- VivaAerobus: $34m/$6m*; 8%
July-December 2019 (6 months)
- Air New Zealand: $65m; 6%
- Virgin Australia: -$61m/$10m*; 3%
- Comair/Kulula: -$38m/-$4m*; 0%
Net result in USD; operating margin
*Net profit excluding special items (all operating figures exclude special items)