Qantas joins list of firms cautioning on hit from coronavirus outbreak

Qantas on Thursday joined a throng of businesses in laying bare how the China coronavirus outbreak is hurting them, with the Australian airline cautioning it could suffer a A$150 million (£77 million) impact.

Updates from Qantas, airline group Air France-KLM and shipping giant AP Moller-Maersk came as the coronavirus death toll passed 2000.

Companies are scrambling to limit the exposure of their employees to the illness.

Qantas has suspended flights to mainland China, and chief executive Alan Joyce said: “We’re now seeing some secondary impacts with weaker demand in Hong Kong, Singapore and, to a lesser extent, Japan.”

The firm will reduce flights to Asia and warned coronavirus is estimated to result in a A$100 million-A$150 million hit to earnings in the year to June 30.

Air France-KLM said based on a suspension of China flights from February to March, the outbreak could cost it between €150 million (£125 million) and €200 million.

Container shipping firm Maersk, which has had to cancel a number of departures from China, said it expects a weak start to the year.

Elsewhere today, FTSE 250 recruitment company Hays said it is closely monitoring the virus situation. But it added it is “too early” to predict any financial impact.

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