China flights cancelled: 5 airline trades
Airlines, including United Airlines Holdings Inc, said they had canceled some flights to China as demand plummeted and global companies advised their employees not to travel for now due to growing concerns about the spread of a flu-like virus..
Coronavirus originating in Wuhan city has killed 106 people in China and spread worldwide, causing financial market turmoil.
The United States has warned that Americans should reconsider visiting China, while Britain advises against making any other than important travel to mainland China. South Korea also advised its citizens to stay away from the Middle Kingdom..
Facebook Inc became the first major American company to announce a travel suspension following a warning from the US government. The company said it asked its employees to stop unnecessary travel to mainland China and work from home if they have already arrived there..
Chicago-based United said it suspended 24 U.S. flights to Beijing, Hong Kong and Shanghai between February 1-8 due to a significant drop in demand..
Europe’s largest bank HSBC Holdings PLC has banned all employees from traveling to China-controlled Hong Kong and mainland China for two weeks until further notice, Reuters reported..
The British lender, which has the largest presence in China among foreign banks, also asked employees who recently visited the country to undergo a voluntary 14-day quarantine. The virus has an incubation period of up to 14 days..
Its American competitor Goldman Sachs Group Inc introduced similar measures.
In South Korea, home appliance maker LG Electronics Inc has imposed a complete ban on travel to China and advised employees on business trips in that country to return home as soon as possible, a company spokeswoman said..
South Korean chip maker SK Hynix Inc has said it is urging employees to avoid any nonessential travel to China, while Standard Chartered PLC’s banking group has restricted travel to both mainland China and Hong Kong..
In Germany, car supplier Webasto, which has 11 sites in China, including Wuhan, has suspended all corporate travel to and from China after an employee was infected..
Japan’s Honda Motor Co Ltd said it encourages employees to avoid traveling to China, while Nissan Motor Co Ltd said it plans to evacuate Japanese personnel and their families from Wuhan on a government-chartered flight..
In addition to United, other airlines have said they are adjusting their schedules as many global airlines re-evaluate the risks of traveling to China..
South Korean low-cost carrier Air Seoul has said it will stop all flights to China, while Taiwan’s China Airlines Ltd has postponed and canceled some flights to China until February 10..
Taiwan-based Eva Airways Corp also said some flights to China could be canceled..
Air Canada said it is canceling some of its 33 weekly flights to China, German airline Lufthansa indicated reduced reservations for flights to and from the country.
Hong Kong-based Cathay Pacific Airways Ltd said it will gradually cut capacity to / from mainland China by 50% or more from January 30 to the end of March, in line with government directives as well as market demand.
International SOS, a medical and tourism security company that advises travel companies, said its position for now is that business travel to China outside of Hubei and Wuhan may continue..
However, this position could be updated if major flight cancellations across China and even larger disruptions to ground transportation begin, said SOS Director of International Security James Robertson..