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Airlines suspend China flights, cut services on virus fears – 680 News

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British Airways said Wednesday it is halting all flights to China, joining several Asian carriers that are either suspending or significantly cutting back service there as fears spread about a new virus that has killed more than 130 people.

Air India and South Korean budget carrier Seoul Air are also halting all flights to the country, and Indonesia’s Lion Air plans to do the same. Other carriers including Finnair, Hong Kong-based Cathay Pacific, Air India and Singapore-based Jetstar Asia are slashing service.

BA took some of the most decisive action so far, immediately suspending all flights to and from mainland China after the U.K. government warned against unnecessary travel to the country amid a virus outbreak.

The airline operates daily flights from London’s Heathrow Airport to Shanghai and Beijing. It took the measure a day after Britain’s Foreign Office updated its travel advice on China, warning against “all but essential travel” to the mainland, not including Hong Kong and Macao.

China has cut off access to the central city of Wuhan, epicenter of the outbreak, and 16 other cities to prevent people from leaving and spreading the virus further. That has trapped more than 50 million people in the most far-reaching disease control measures ever imposed. The outbreak has infected more than 6,000 on the mainland and abroad.

Online flight notice boards for the Beijing and Shanghai airports showed numerous cancellations for both domestic and foreign airlines on Wednesday:

—Air Canada said it is cancelling select routes due to a fall in demand. “In response to the coronavirus situation, we are cancelling select flights to China to better match capacity with expected demand,” the airline said in a statement.

—Air Seoul, a budget airline, became the first South Korean airline to suspend its fights to mainland Chinese destinations apart from Wuhan, stopping its flights to the cities of Zhangjiajie and Linyi.

—Indonesia’s Lion Air said it has cancelled more than 50 flights to China well into February. The flights are from five international airports in Manado, Surabaya, Jakarta, Batam and from Denpasar, in Bali, to 15 airports in China. The suspension will be phased in gradually and continue until further notice.

—Hong Kong airlines are cutting the number of their flights to the mainland by about half through the end of March in response to government virus-control efforts.

—Cathay Pacific Group said flights to 24 mainland destinations would be reduced to 240 weekly. The company owns Cathay Pacific Airways , cargo carrier Air Hong Kong, Cathay Dragon and Hong Kong Express.

—Air India is suspending Delhi-Shanghai flights, which operate six times a week, from Friday until Feb. 14.

—Finland’s Finnair, which has actively promoted its position linking Asian and Western destinations, said it was cancelling three weekly flights to Beijing Daxing International Airport through late March, as well as its twice-weekly flights to Nanjing.

—Jetstar Asia will temporarily suspend flights to the Chinese cities of Hefei, Guiyang and Xuzhou starting Thursday through the end of March due to a drop in demand.

—South Korea’s second-largest carrier, Asiana Airlines, will temporarily suspend flights to the Chinese cities of Guilin, Changsha and Haikou starting next month.

—Korean Air, South Korea’s biggest airline, said it is also considering grounding some of its flights to mainland China as passenger demand drops. Korean Air had operated four flights a week to the Chinese city of Wuhan, the epicenter of the outbreak, before suspending them on Jan. 23.

—Taiwan’s Eva Air announced a partial cancellation of flights to and from mainland China for two weeks starting Feb. 2. In addition, the airline also has stopped providing towels, magazines, table clothes, and is limiting use of blankets and pillows on its flights.

—Kazakhstan, which shares a long border with far western China, announced Wednesday that it plans to suspend all flights, train and bus traffic and to halt issuing visas to Chinese nationals. Before the Wednesday’s suspension, there were 24 flights a week from Kazakhstan to China, including a daily flight to Urumqi, the capital of Xinjiang.

—Japan’s JAL said it had not changed its flight plans, while German carrier Lufthansa said it was monitoring the situation “very closely” and would if necessary make changes in consultation with the authorities.

Niniek Karmini and Edna Tarigan in Jakarta, Jan Olsen in Copenhagen, Daria Litvinova in Moscow, Mari Yamaguchi in Tokyo, Tong-hyung Kim in Seoul, Penny Wang in Bangkok and Joe McDonald in Beijing contributed to this report.

British Airways and Asian budget carriers Lion Air and Seoul Air are suspending flights to China as fears spread about the outbreak of a new virus that has killed more than 130 people.

Several other airlines including Finnair, Hong Kong-based Cathay Pacific and Singapore-based Jetstar Asia are reducing the number of flights to the country as demand for travel drops because of the outbreak.

Air Canada said it is cancelling select routes due to a fall in demand.

“In response to the coronavirus situation, we are cancelling select flights to China to better match capacity with expected demand,” the airlines said in a statement.

“Air Canada currently operates 33 flights a week to China and the resulting capacity reduction is relatively small. Those customers who are affected will be notified and provided with alternate travel options.”

British Airways said Wednesday it is immediately suspending all flights to and from mainland China after the U.K. government warned against unnecessary travel to the country amid a virus outbreak.

The airline operates daily flights from London’s Heathrow Airport to Shanghai and Beijing. It took the measure a day after Britain’s Foreign Office updated its travel advice on China, warning against “all but essential travel” to the mainland, not including Hong Kong and Macao.

Air Seoul, a budget airline, became the first South Korean airline to suspend its fights to mainland Chinese destinations that wasn’t Wuhan, stopping its flights to the cities of Zhangjiajie and Linyi.

Lion Air said it has cancelled more than 50 flights to China well into February. The flights are from five international airports in Denpasar, Manado, Surabaya, Jakarta and Batam to 15 airports in China.

Lion Group spokesman Danang Mandala Prihantor said the suspension would be phased in gradually and would continue until further notice.

China has cut off access to Wuhan and 16 other cities to prevent people from leaving and spreading the virus further. The outbreak has infected more than 6,000 on the mainland and abroad.

Hong Kong airlines are cutting the number of their flights to the mainland by about half through the end of March in response to government virus-control efforts.

Cathay Pacific Group said flights to 24 mainland destinations would be reduced to 240 weekly. The company owns Cathay Pacific Airways, Hong Kong Airlines, Cathay Dragon and Hong Kong Express.

Helsinki, Finland-based Finnair, which has actively promoted its position linking Asian and Western destinations, said it was cancelling three weekly flights to Beijing Daxing International Airport through late March, as well as its twice-weekly flights to Nanjing. It will continue operating flights to four other mainland Chinese destinations, including Beijing Capital Airport.

Jetstar Asia said it will temporarily suspend flights to the Chinese cities of Hefei, Guiyang and Xuzhou starting Thursday through the end of March due to a drop in demand.

South Korea’s second-largest carrier, Asiana Airlines, said it will temporarily suspend flights to the Chinese cities of Guilin, Changsha and Haikou starting next month.

Korean Air, South Korea’s biggest airline, said it is also considering grounding some of its flights to mainland China as passenger demand drops. Korean Air had operated four flights a week to the Chinese city of Wuhan, the epicenter of the outbreak, before suspending them on Jan. 23.

Taiwan’s Eva Air announced a partial cancellation of flights to and from mainland China for two weeks starting Feb. 2. In addition, the airline also has stopped providing towels, magazines, table clothes, and is limiting blanket and pillow in flight.

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Telus prioritizing ‘most important customers,’ avoiding ‘unprofitable’ offers: CFO

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Telus Corp. says it is avoiding offering “unprofitable” discounts as fierce competition in the Canadian telecommunications sector shows no sign of slowing down.

The company said Friday it had fewer net new customers during its third quarter compared with the same time last year, as it copes with increasingly “aggressive marketing and promotional pricing” that is prompting more customers to switch providers.

Telus said it added 347,000 net new customers, down around 14.5 per cent compared with last year. The figure includes 130,000 mobile phone subscribers and 34,000 internet customers, down 30,000 and 3,000, respectively, year-over-year.

The company reported its mobile phone churn rate — a metric measuring subscribers who cancelled their services — was 1.09 per cent in the third quarter, up from 1.03 per cent in the third quarter of 2023. That included a postpaid mobile phone churn rate of 0.90 per cent in its latest quarter.

Telus said its focus is on customer retention through its “industry-leading service and network quality, along with successful promotions and bundled offerings.”

“The customers we have are the most important customers we can get,” said chief financial officer Doug French in an interview.

“We’ve, again, just continued to focus on what matters most to our customers, from a product and customer service perspective, while not loading unprofitable customers.”

Meanwhile, Telus reported its net income attributable to common shares more than doubled during its third quarter.

The telecommunications company said it earned $280 million, up 105.9 per cent from the same three-month period in 2023. Earnings per diluted share for the quarter ended Sept. 30 was 19 cents compared with nine cents a year earlier.

It reported adjusted net income was $413 million, up 10.7 per cent year-over-year from $373 million in the same quarter last year. Operating revenue and other income for the quarter was $5.1 billion, up 1.8 per cent from the previous year.

Mobile phone average revenue per user was $58.85 in the third quarter, a decrease of $2.09 or 3.4 per cent from a year ago. Telus said the drop was attributable to customers signing up for base rate plans with lower prices, along with a decline in overage and roaming revenues.

It said customers are increasingly adopting unlimited data and Canada-U.S. plans which provide higher and more stable ARPU on a monthly basis.

“In a tough operating environment and relative to peers, we view Q3 results that were in line to slightly better than forecast as the best of the bunch,” said RBC analyst Drew McReynolds in a note.

Scotiabank analyst Maher Yaghi added that “the telecom industry in Canada remains very challenging for all players, however, Telus has been able to face these pressures” and still deliver growth.

The Big 3 telecom providers — which also include Rogers Communications Inc. and BCE Inc. — have frequently stressed that the market has grown more competitive in recent years, especially after the closing of Quebecor Inc.’s purchase of Freedom Mobile in April 2023.

Hailed as a fourth national carrier, Quebecor has invested in enhancements to Freedom’s network while offering more affordable plans as part of a set of commitments it was mandated by Ottawa to agree to.

The cost of telephone services in September was down eight per cent compared with a year earlier, according to Statistics Canada’s most recent inflation report last month.

“I think competition has been and continues to be, I’d say, quite intense in Canada, and we’ve obviously had to just manage our business the way we see fit,” said French.

Asked how long that environment could last, he said that’s out of Telus’ hands.

“What I can control, though, is how we go to market and how we lead with our products,” he said.

“I think the conditions within the market will have to adjust accordingly over time. We’ve continued to focus on digitization, continued to bring our cost structure down to compete, irrespective of the price and the current market conditions.”

Still, Canada’s telecom regulator continues to warn providers about customers facing more charges on their cellphone and internet bills.

On Tuesday, CRTC vice-president of consumer, analytics and strategy Scott Hutton called on providers to ensure they clearly inform their customers of charges such as early cancellation fees.

That followed statements from the regulator in recent weeks cautioning against rising international roaming fees and “surprise” price increases being found on their bills.

Hutton said the CRTC plans to launch public consultations in the coming weeks that will focus “on ensuring that information is clear and consistent, making it easier to compare offers and switch services or providers.”

“The CRTC is concerned with recent trends, which suggest that Canadians may not be benefiting from the full protections of our codes,” he said.

“We will continue to monitor developments and will take further action if our codes are not being followed.”

French said any initiative to boost transparency is a step in the right direction.

“I can’t say we are perfect across the board, but what I can say is we are absolutely taking it under consideration and trying to be the best at communicating with our customers,” he said.

“I think everyone looking in the mirror would say there’s room for improvement.”

This report by The Canadian Press was first published Nov. 8, 2024.

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TC Energy cuts cost estimate for Southeast Gateway pipeline project in Mexico

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CALGARY – TC Energy Corp. has lowered the estimated cost of its Southeast Gateway pipeline project in Mexico.

It says it now expects the project to cost between US$3.9 billion and US$4.1 billion compared with its original estimate of US$4.5 billion.

The change came as the company reported a third-quarter profit attributable to common shareholders of C$1.46 billion or $1.40 per share compared with a loss of C$197 million or 19 cents per share in the same quarter last year.

Revenue for the quarter ended Sept. 30 totalled C$4.08 billion, up from C$3.94 billion in the third quarter of 2023.

TC Energy says its comparable earnings for its latest quarter amounted to C$1.03 per share compared with C$1.00 per share a year earlier.

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

This report by The Canadian Press was first published Nov. 7, 2024.

Companies in this story: (TSX:TRP)

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BCE reports Q3 loss on asset impairment charge, cuts revenue guidance

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BCE Inc. reported a loss in its latest quarter as it recorded $2.11 billion in asset impairment charges, mainly related to Bell Media’s TV and radio properties.

The company says its net loss attributable to common shareholders amounted to $1.24 billion or $1.36 per share for the quarter ended Sept. 30 compared with a profit of $640 million or 70 cents per share a year earlier.

On an adjusted basis, BCE says it earned 75 cents per share in its latest quarter compared with an adjusted profit of 81 cents per share in the same quarter last year.

“Bell’s results for the third quarter demonstrate that we are disciplined in our pursuit of profitable growth in an intensely competitive environment,” BCE chief executive Mirko Bibic said in a statement.

“Our focus this quarter, and throughout 2024, has been to attract higher-margin subscribers and reduce costs to help offset short-term revenue impacts from sustained competitive pricing pressures, slow economic growth and a media advertising market that is in transition.”

Operating revenue for the quarter totalled $5.97 billion, down from $6.08 billion in its third quarter of 2023.

BCE also said it now expects its revenue for 2024 to fall about 1.5 per cent compared with earlier guidance for an increase of zero to four per cent.

The company says the change comes as it faces lower-than-anticipated wireless product revenue and sustained pressure on wireless prices.

BCE added 33,111 net postpaid mobile phone subscribers, down 76.8 per cent from the same period last year, which was the company’s second-best performance on the metric since 2010.

It says the drop was driven by higher customer churn — a measure of subscribers who cancelled their service — amid greater competitive activity and promotional offer intensity. BCE’s monthly churn rate for the category was 1.28 per cent, up from 1.1 per cent during its previous third quarter.

The company also saw 11.6 per cent fewer gross subscriber activations “due to more targeted promotional offers and mobile device discounting compared to last year.”

Bell’s wireless mobile phone average revenue per user was $58.26, down 3.4 per cent from $60.28 in the third quarter of the prior year.

This report by The Canadian Press was first published Nov. 7, 2024.

Companies in this story: (TSX:BCE)

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