Travel Industry Experience Decline Due to Rapidly Spreading Coronavirus Pandemic

The decline from the ongoing coronavirus epidemic spread across the Globe is severely affecting the travel and tourism industry. On Friday, Australian travel agencies have issued profit warnings, and Japanese transporters are limiting their capacity. Meanwhile, U.S. airlines has hurried to slash expeditions to Europe as a result of the latest travel restrictions. U.S. tourism controls on the most region of continental Europe. Besides, the latest guidelines announced by the President on Wednesday have deepened the area’s distress that started after the new coronavirus surfaces in China in December 2019 and decreased traffic.

On the other hand, United Airlines Holdings Inc. has notified of U.S. travel interruption as coronavirus continues to spread domestically. Even more, famous tourist attractions, say theme parks like Walt Disney Co’s in Florida and California, have announced closure. United and American Airlines Group Inc. have notified that they would carry on offering regular flights to and from Europe for the upcoming week. But later, in April, they aim to slash the capacity to Europe by nearly 50%. Besides, American Airlines has announced cutting international flight capacity by around 34% for the forthcoming summer season. It is also speeding up the stepping down of its 757 and 767 airplanes of Boeing.

Apart from this, Delta Air Lines Inc. said it is currently monitoring customer demand. Later the company would significantly cut down its schedule from the U.S. to Europe after Sunday. On Friday, Fraport, the operator of the German airport, said that the number of passengers at its main Frankfurt airport has decreased by approximately 30%. The airport operator has noticed the decline since the beginning of the current month holds ongoing coronavirus epidemic liable for the same. Fraport CEO Stefan Schulte said they have to accept that the sharp fall in air traffic volumes will persist for the upcoming few weeks or months. Air France KLM SA said it has had pinched down in $1.2 billion for its orbiting credit facility to assist its economic position. Meanwhile, the IATA (International Airport Transport Association), an international group representing airlines, has urged governments to think through increasing lines of credit, cutting taxes, and lessening infrastructure costs.