🧐 ProPicks AI October update is out now! See which stocks made the listPick Stocks with AI

Major U.S. airlines cancel China flights as government takes action

Published 2020-01-31, 02:06 p/m
© Reuters. FILE PHOTO: Delta Airlines sit at Reagan National Airport outside Washington.
DAL
-
AAL
-

By David Shepardson and Tracy Rucinski

WASHINGTON/CHICAGO (Reuters) - All three major U.S. airlines announced the cancellation of flights to mainland China on Friday after the U.S. State Department elevated a travel advisory over concerns about the coronavirus.

The trio of carriers, United Airlines Holdings Inc, Delta Air Lines Inc (NYSE:DAL) and American Airlines (NASDAQ:AAL) Group Inc, had already moved to reduce flights to China amid a sharp drop in demand as the virus spreads.

Their announcements on Friday came ahead of a call with U.S. officials to discuss the flights.

United and Delta said they would continue to operate outbound flights until Feb. 5 and Feb. 3, respectively. United, the largest U.S. carrier to China, said that would "help ensure our U.S. based employees, as well as customers, have options to return home."

American, meanwhile, said it was halting all mainland flights as of Friday through March 27, but would continue to fly to Hong Kong.

The Trump administration was considering new restrictions but it was not clear if it would move forward yet. Some airline officials worried that if they did not voluntarily halt flights it would prompt the government to take formal action, potentially complicating any subsequent flight resumption.

The United States told citizens on Thursday not to travel to China due to the epidemic that has infected nearly 10,000 people and been declared a global emergency.

Airline crew had urged carriers stop flights to the country, with American's pilots filing a lawsuit on Thursday seeking an immediate halt and the union representing Delta and United flight attendants demanding clear direction from the U.S. government.

United said it was suspending its flights to Beijing, Chengdu and Shanghai until March 28 but would continue to operate one daily flight between San Francisco and Hong Kong.

Delta's suspension was set to last through April 30.

U.S. airline shares have posted heavy losses this week on concerns of the financial impact of the virus.

Other airlines that have stopped their flights to mainland China include Air France KLM SA, British Airways, Germany's Lufthansa and Virgin Atlantic.

© Reuters. FILE PHOTO: Delta Airlines sit at Reagan National Airport outside Washington.

Major Chinese carriers were still operating flights to and from the United States as of Friday.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.