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China’s international flight suspensions leave travellers stranded, hurt businesses

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When Dwight Law’s father died in November, the Shanghai-based U.S. expat flew back to Kansas, leaving his wife and dog behind in China while he attended to matters relating to his father’s death.

Law, who runs an architecture and design firm, has lived in Shanghai for 20 years and had expected to return last week.

But with dozens of flights between China and the United States suspended by Chinese authorities because of passengers testing positive for COVID-19 on arrival, finding a flight back even in February is proving near-impossible and posing a threat to Law’s company.

“Now with no flights scheduled, I am currently locked out of China, away from my wife and family and not able to attend to business,” Law said. “I have 50 employees in China. Without my presence, the business will suffer and so will the livelihoods of each employee.”

Even before the latest flight cancellations, international capacity to and from China was running at just 2% of pre-COVID levels as the country sticks to a strict zero-COVID policy of stamping out all cases while other parts of world open up.

The zero-COVID mentality is likely to stay for most of 2022, Bank of America Securities analysts said in a note on Tuesday, in bad news for the 845,000 foreign passport holders in China, a number already reduced since the start of the coronavirus pandemic.

China’s aviation regulator in January alone cancelled 143 return flights as the highly transmissible Omicron variant spreads across the globe, according to a report from Chinese aviation data provider flight master last Friday.

That was the most in a month since it introduced a policy of suspending flights when positive cases were found in June 2020.

The flight suspensions, which also include some services to Europe and other parts of Asia, are one of the biggest challenges faced by companies doing business in China, said a spokesperson for the Europe Chamber of Commerce in China.

“The recent cancellations send a clear message that China will not deviate from its current strategy,” the spokesperson said, referring to the zero-COVID policy.

 

Graphic: China’s international flight suspensions – https://graphics.reuters.com/CHINA-AVIATION/USA-FLIGHTS/lbvgnjerbpq/chart.png

 

China now requires passengers to have started costly COVID tests seven days before boarding in the departure city of their direct flight into China. That creates a headache for travellers like Law who are not based in U.S. cities with direct flights.

Tough travel policies in transit hubs for U.S.-China travellers like Taiwan, Korea and Japan also effectively rule out less costly indirect flights.

A Google Flights search by Reuters shows no flights from San Francisco to Shanghai are available for booking until late March at any price.

Jing Quan, minister of the Chinese embassy in the United States, said Beijing is working closely with the U.S. State Department to strike a balance on the number of commercial flights to China. Charter flights for Olympics athletes have not been affected, he said.

There has also been less of an impact on cargo. China Southern Airlines plans to fly its A380 superjumbos with cargo only from Los Angeles to Guangzhou, while carrying passengers in the other direction, it told the U.S. Department of Transportation (DOT).

Hainan Airlines has received U.S. approvals for cargo-only flights using passenger planes and China Eastern is seeking a similar nod, according to DOT filings.

While that is a comfort to exporters, it provides little solace to stranded travellers like Law.

“COVID will not go away I am afraid. It is here to stay,” he said. “What’s China going to do, close its borders for the next five or 10 years while the world outside of China learns to manage, live and gain herd immunity? It’s nuts.”

 

(Reporting by Stella Qiu in Beijing and Jamie Freed in Sydney; additional reporting by Martin Pollard in Shanghai; Editing by Raju Gopalakrishnan)

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Restaurant Brands reports US$357M Q3 net income, down from US$364M a year ago

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TORONTO – Restaurant Brands International Inc. reported net income of US$357 million for its third quarter, down from US$364 million in the same quarter last year.

The company, which keeps its books in U.S. dollars, says its profit amounted to 79 cents US per diluted share for the quarter ended Sept. 30 compared with 79 cents US per diluted share a year earlier.

Revenue for the parent company of Tim Hortons, Burger King, Popeyes and Firehouse Subs, totalled US$2.29 billion, up from US$1.84 billion in the same quarter last year.

Consolidated comparable sales were up 0.3 per cent.

On an adjusted basis, Restaurant Brands says it earned 93 cents US per diluted share in its latest quarter, up from an adjusted profit of 90 cents US per diluted share a year earlier.

The average analyst estimate had been for a profit of 95 cents US per share, according to LSEG Data & Analytics.

This report by The Canadian Press was first published Nov. 5, 2024.

Companies in this story: (TSX:QSR)

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Electric and gas utility Fortis reports $420M Q3 profit, up from $394M a year ago

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ST. JOHN’S, N.L. – Fortis Inc. reported a third-quarter profit of $420 million, up from $394 million in the same quarter last year.

The electric and gas utility says the profit amounted to 85 cents per share for the quarter ended Sept. 30, up from 81 cents per share a year earlier.

Fortis says the increase was driven by rate base growth across its utilities, and strong earnings in Arizona largely reflecting new customer rates at Tucson Electric Power.

Revenue in the quarter totalled $2.77 billion, up from $2.72 billion in the same quarter last year.

On an adjusted basis, Fortis says it earned 85 cents per share in its latest quarter, up from an adjusted profit of 84 cents per share in the third quarter of 2023.

The average analyst estimate had been for a profit of 82 cents per share, according to LSEG Data & Analytics.

This report by The Canadian Press was first published Nov. 5, 2024.

Companies in this story: (TSX:FTS)

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Thomson Reuters reports Q3 profit down from year ago as revenue rises

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TORONTO – Thomson Reuters reported its third-quarter profit fell compared with a year ago as its revenue rose eight per cent.

The company, which keeps its books in U.S. dollars, says it earned US$301 million or 67 cents US per diluted share for the quarter ended Sept. 30. The result compared with a profit of US$367 million or 80 cents US per diluted share in the same quarter a year earlier.

Revenue for the quarter totalled US$1.72 billion, up from US$1.59 billion a year earlier.

In its outlook, Thomson Reuters says it now expects organic revenue growth of 7.0 per cent for its full year, up from earlier expectations for growth of 6.5 per cent.

On an adjusted basis, Thomson Reuters says it earned 80 cents US per share in its latest quarter, down from an adjusted profit of 82 cents US per share in the same quarter last year.

The average analyst estimate had been for a profit of 76 cents US per share, according to LSEG Data & Analytics.

This report by The Canadian Press was first published Nov. 5, 2024.

Companies in this story: (TSX:TRI)

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