United Airlines will likely cut more flights rather than fly empty planes bereft of travelers fearing the coronavirus outbreak, according to a report.
United CEO Oscar Munoz told employees about the possible service reduction in an email on Saturday. The nation’s third-largest airline confirmed the announcement on Sunday, CNBC reports.
“We are strategically managing our Atlantic and domestic service, mindful of travel directories from the federal government, fluctuating demand and of course, the advice of public health experts,” Munoz wrote in the message. “Based on current trends, it is likely that additional schedule reductions will be necessary.”
It’s unclear which flights — if any — would ultimately be scaled back. A message seeking additional comment from United reps was not immediately returned early Monday.
The Chicago-based carrier will also postpone start dates for a new class of 23 pilots who were originally supposed to start training this week, CNBC reports.
Munoz’s note follows an announcement on Friday that the airline would cancel some flights to Japan, Singapore and Seoul, South Korea. Flight restrictions to China and Hong Kong were also extended through April 30.
“We will stay in close contact with the [Centers for Disease Control and Prevention] and other health organizations as we continue to evaluate our schedule,” United said in a statement.
The developments come as the COVID-19 outbreak continues to spread worldwide, straining the travel industry to the potential tune of $46.6 billion per month, according to a survey released Thursday by the Global Business Travel Association.
That figure translates to $559.7 billion annually — or 37 percent of the industry’s expected haul for 2020. The survey also found that the virus is having a detrimental impact on business meetings and events, with nearly two-thirds of respondents saying they have canceled at least a few meetings due to coronavirus fears.
“It is clear that the coronavirus is having a significant – and potentially very costly – effect on our numbers, their companies and on the overall business travel industry,” GBTA CEO Scott Solombrino said in a statement. “It is fundamentally affecting the way many companies are now doing business. If this turns into a global pandemic, the industry may well lose billions of dollars – an impact that will have negative ramifications for the entire global economy.”
US stocks, meanwhile, plunged 357 points, or 1.4 percent, on Friday, wrapping up their worst week since the 2008 financial crisis.