Warren East

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British Airways -owner IAG has warned That bookings will be affected in the year 2020, due to the effect of the Corona Virus.

The airline group said That the flight suspensions to China, and cancellations on the Italian routes would.

he said It was not possible to say how much profits would be in the year 2020 because of the uncertainty about the impact and the duration of the current outbreak.

rival Easyjet is said,

The budget airline That , in consequence of the increase in The Number of coronavirus cases in the North of Italy, in which it had seen "a significant softening of demand and utilisation in and out of our Northern Italian bases".

"As a result, we make the decisions to cancel some flights, especially those to and from Italy, while continuing to monitor The Situation and adjust our flying programme to support the demand. "

Easyjet said it would be important to investigate how you can save costs in your company are the result. This includes the search in the cutting-households in the administrative areas; freezing of the setting, the increases in promotion and wages; and the offer of unpaid leave.

"Significant" decline in

British Airways -owner IAG has stopped and limited flights, as The Virus spreads from China to Europe and beyond,

at the end of January, The Group suspended all flights to Mainland China . Flights to Hong Kong were reduced, and from March there will also be fewer flights to Seoul.

IAG chief executive Willie Walsh told the BBC's Today programme That in The First three weeks of February, particularly in Asia, bookings were affected.

"of course we had announced the suspension of flights to China. We have made the decision on by the end of January, and we had seen some impact on our other Asian routes, but it had looked like it was to stabilize.

"But earlier This Week we had the problems in Italy, and That 's clearly led to a significant decline in demand in Italy and in some surrounding countries as well. "

The Number of passengers on Italian routes in March, "significantly reduced" and "further capacity reduction is activated to be said in the coming days," IAG said in a Statement .

Easyjet was forced to cancel some flights

Mr Walsh added That the General terms of business travel-were affected by the cancellation of large conferences, as well as the imposition of travel restrictions by some major companies.

the airline stocks were among the hardest hit in the global market sell-off seen This Week , and the IAG sunk to a share of 17%.

"I don't think there is any surprise That investors are cautious in the current Situation," Mr Walsh.

He added That IAG had a "very sound balance sheet," but it was "of course, in the current Situation, That the people be careful".

'known unknowns'

Rolls-Royce is one of The World 's largest manufacturer of aircraft engines, also warned That the impact of the Corona-Virus on your business.

Chief executive Warren East said The Virus was a "macro-risk".

"It is not industry-or company-specific. It is a known unknown," he told the BBC.

"this is something That is evolving every day, and the effect depends on how long the disruption lasts, as it is wide, from a regional point of view, the disturbance spreads, and to soften, of course, for us as a company, our ability against. "

coronavirus outbreak, easyjet, air travel, companies, iag, british airways

Source of news: bbc.com