Mar 2, 2020 - Health

British Airways limits London-New York flights as coronavirus reduces demand

Photo: Daniel Berehulak/Getty Images

British Airways announced Monday it was canceling 12 flights from London's Heathrow to New York’s JFK airport to match low demand caused by the coronavirus outbreak.

Why it matters: It's the only route in the world that rakes in more than $1 billion in revenue per year, topping the rankings of highest-earning flights by nearly $300 million more than its closest rival, according to travel firm OAG.

What they're saying: "We will be contacting customers on cancelled flights so we can discuss their travel options, including rebooking onto other carriers where possible, full refunds or booking with BA for a later date of travel," the airlines said in a statement.

The big picture: The airline has canceled several other flights to Italy, France, Germany and other countries in Europe from London's airports. Routes to China, Singapore and South Korea have also already been paused due to the outbreak.

Go deeper: United Airlines to pause flights to Japan due to coronavirus

Go deeper

The coronavirus is causing widespread U.S. price cuts

Illustration: Aïda Amer/Axios

Having already hit supply chains and led to the widespread cancellation of large gatherings and events, the COVID-19 outbreak is now causing a repricing on tourism and travel globally, as airlines, hotels and travel operators see major declines in bookings and revenue.

Why it matters: China's record low readings in February for both manufacturing and services could serve as a warning of what's to come for parts of Asia, Europe, and even the U.S.

United Airlines to cut capacity by 50% over the coronavirus

A United Airlines plane lands at San Francisco International Airport on March 6 in Burlingame, California. Photo: Justin Sullivan/Getty Images

United Airlines said in a statement Sunday it will cut capacity by about 50% for April and May from Monday, as the airline sees a drop in demand because of the novel coronavirus outbreak.

The big picture: The announcement comes after Delta Airlines announced Friday it would reduce its flight capacity by 40% for the next four months over the outbreak. United said even with the cuts it announced, "we're expecting load factors to drop into the 20–30% range — and that's if things don't get worse."

Go deeper: Coronavirus rattles travelers — and airlines

Editor's note: This article has been updated with more comment from United and context.

Keep ReadingArrowUpdated Mar 16, 2020 - Health

A lifeline emerges for the devastated airline industry

American Airlines planes parked at Los Angeles International Airport. Photo: Alex Tai/SOPA Images/LightRocket via Getty Images

Congress' massive $2 trillion coronavirus stimulus package includes $58 billion for U.S. airlines, half in grants to cover 750,000 employees' paychecks, and the rest in loans or loan guarantees to help them keep operating during the worst travel downturn in history.

Why it matters: With some 80 million U.S. residents under mandatory stay-at-home orders and the coronavirus pandemic continuing to spread, hardly anyone is flying these days. But when the public health crisis ends, airlines want to be able to take off again quickly.