Air France-KLM, Qantas, and the global container shipping giant Maersk have become the latest businesses to warn about the financial impact from the continued spread of the coronavirus.

The airlines have both cancelled flights to and from China and are suffering weaker demand for travel in Asia.

If China flights remain suspended until April, the Franco-Dutch airline group Air France-KLM said it expects the Covid-19 outbreak to wipe between €150-200m (£130-170m) off its earnings.

Qantas expects its annual profits to be A$150m (£77m) lower, and said it will reduce flights to Asia by 15% until at least the end of May. While its planes remain grounded, Australia’s flag carrier will put employees on leave and is freezing recruitment.

Alan Joyce, chief executive of Qantas, said there was a similar drop in demand for flights during the Sars outbreak in 2003, and the impact of that epidemic lasted between six and eight months. The airline believes it can manage for at least six months without cutting jobs.

How can I protect myself from the coronavirus outbreak?

The World Health Organization is recommending that people take simple precautions to reduce exposure to and transmission of the Wuhan coronavirus, for which there is no specific cure or vaccine.

The UN agency advises people to:

• Frequently wash their hands with an alcohol-based hand rub or warm water and soap

• Cover their mouth and nose with a flexed elbow or tissue when sneezing or coughing

• Avoid close contact with anyone who has a fever or cough

• Seek early medical help if they have a fever, cough and difficulty breathing, and share their travel history with healthcare providers

• Avoid direct, unprotected contact with live animals and surfaces in contact with animals when visiting live markets in affected areas

• Avoid eating raw or undercooked animal products and exercise care when handling raw meat, milk or animal organs to avoid cross-contamination with uncooked foods.

Despite a surge in sales of face masks in the aftermath of the outbreak of the coronavirus outbreak, experts are divided over whether they can prevent transmission and infection. There is some evidence to suggest that masks can help prevent hand-to-mouth transmissions, given the large number of times people touch their faces. The consensus appears to be that wearing a mask can limit – but not eliminate – the risks, provided they are used correctly.

The Foreign and Commonwealth Office has advised UK nationals to leave China where possible. It is also warning that travellers from Hong Kong, Japan, Macau, Malaysia, Republic of Korea, Singapore, Taiwan and Thailand who develop symptoms of cough or fever or shortness of breath within 14 days of returning the UK should contact the NHS by phone.

Justin McCurry

“We are keeping the capability to have the rebound, keeping the aircraft, keeping the people because we think it will happen eventually,” Joyce said.

Maritime transport is also counting the cost of the outbreak. The Danish firm Maersk handles one in every five containers shipped by sea, and is forecasting a weak start to 2020. The shipping giant has not put a number on the cost of lower demand and difficulties delivering to some ports.

“It is still early days to measure the overall impact,” the company said in a statement. “However, the weekly container vessel calls at key Chinese ports were significantly down compared [to] last year during the last weeks of January and the first weeks of February. Freight rates are expected to decrease due to dropping demand for containerised goods transport.”

In China, the government has unveiled fresh stimulus measures in an effort to support the economy during the outbreak. Factories in the country remained closed for longer than usual following January’s new year holiday, and some large industrial centres remain under quarantine conditions.

China’s central bank cut its benchmark lending rate and added measures to keep the economy moving, a move which boosted Chinese stock markets. In a quarterly report, the central bank said it sees limited economic impact from the virus, but has offered to extend credit and provide favourable terms to firms that have a role in controlling the epidemic.

Reports on Wednesday from mainland China said there had been 2,004 deaths and 74,185 confirmed infections of the virus. In recent days, new cases have fallen to fewer than 2,000 a day, but officials have warned about the threat of a more serious outbreak as people gradually return to work after the prolonged lunar new year holiday.

• Sign up to the daily Business Today email here or follow Guardian Business on Twitter at @BusinessDesk

Source: Read Full Article