Airline industry turmoil deepens as coronavirus pain spreads

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Airline industry turmoil deepens as coronavirus pain spreads
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Airline industry turmoil deepened on Thursday as Qantas Airways Ltd told most of...

) told most of its 30,000 employees to take leave and India prepared a rescue package of up to $1.6 billion to aid carriers battered by coronavirus, government sources said.

Passenger operations have collapsed at an unprecedented rate as the virus spreads around the world, with Delta Air Lines Inc parking more than 600 jets, cutting corporate pay by as much as 50%, and scaling back its flying by more than 70% until demand begins to recover. American Airlines Group Inc in a memo to staff rebuffed criticism that it had rewarded its shareholders with too many dividends and stock buybacks in better times, leaving it with less cash to manage the crisis.

“The sad fact is that due to circumstances beyond our control, travel demand has evaporated,” Qantas Chief Executive Alan Joyce said in a memo to staff seen by Reuters. “We have no work for most of our people.” As countries step up border restrictions, more flights are being cut. Air Canada said it was gradually suspending the majority of its international and U.S. transborder flights by March 31.

The New Zealand government on Thursday advised citizens not to travel overseas because of the risks posed by the coronavirus.

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