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Norwegian to cut 4000 flights as US coronavirus travel ban hammers airlines

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“This is an unprecedented situation and our main priority continues to be the care and safety of our customers and colleagues. The new restrictions imposed further pressure on an already difficult situation. We urge international governments to act now to ensure that the aviation industry can protect jobs and continue to be a vital part of the global economic recovery.”

Beleaguered Norwegian Air has suspended more than 4000 flights, grounding 40 per cent of its long haul capacity, in an attempt to limit the devastation caused by coronavirus.

The cancellations come after US president Donald Trump announced a travel ban on 26 EU countries, excluding the UK and Ireland, which will last for 30 days.

The airline, which many have tipped to follow Flybe into administration due to its hefty debt pile, has also cancelled 25 per cent of its short-haul flights until the end of May.

Chief executive Jacob Schram said: “This is an unprecedented situation and our main priority continues to be the care and safety of our customers and colleagues. The new restrictions imposed further pressure on an already difficult situation.

“We urge international governments to act now to ensure that the aviation industry can protect jobs and continue to be a vital part of the global economic recovery.”

The airline will also temporarily lay off 50 per cent of its staff, warning that the number could increase.

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HSBC analyst Andrew Lobbenberg said that 46 per cent of Norwegian’s 2020 capacity was scheduled to serve the US market.

According to data from travel analytics firm Cirium, 60 per cent of Europe’s scheduled flights to the US from 14 March, when the measures kick in, are from the restricted Schengen zone countries.

In total, that accounts for 7,317 flights and over 2m seats. Germany will be the worst affected EU country, with 1,714 flights scheduled for the period.

Lufthansa will be the most affected European airline, with 905 flight scheduled.

International Air Transport Association (IATA) estimated the value of the US-Schengen market at $20.9bn in 2019.

IATA boss Alexandre de Juniac said that the ban “will create enormous cash-flow pressures for airlines.

“We have already seen Flybe go under. And this latest blow could push others in the same direction. Airlines will need emergency measures to get through this crisis”.

More to follow.