Feb. 25--The global coronavirus outbreak has caused a 75% drop in near-term demand for United flights to Asia on top of already canceled routes to China, the company said in a filing Monday. The airline has cut its revenue forecast for the year.
United, whose San Francisco hub accounts for 40% of the flights at the airport, said in the filing with the U.S. Securities and Exchange Commission that "we are managing our business to minimize the operational and financial disruption."
United Airlines shares fell 4.9% Tuesday morning to trade around $71.78, which is below the range the shares have traded since mid-2018.
The company said it expected reduced revenue on trans-Pacific routes to be partially offset by the decline in fuel prices and other cost savings in the first three months of the year.
"However, due to the heightened uncertainty surrounding this outbreak, its duration, its impact on overall demand for air travel and the possibility the outbreak spreads to other regions, the company is withdrawing all full-year 2020 guidance issued on January 21, 2020," the airline said.
United flights to Beijing, Chengdu, Shanghai and Hong Kong are suspended through April 24, accounting for 5% of the company's planned 2020 flight capacity. The other flights to Asia represent 10% of that capacity.
As of Tuesday morning, United as well as Korean Air and Asiana Airlines are still flying directly from SFO to Seoul, although United is offering waivers for refunds if passengers want to change or cancel their travel.
"We did extend our waiver to cover South Korea yesterday, but those flights are still operating," spokeswoman Leslie Scott said in an email.
U.S. government agencies have issued travel advisories warning citizens to not go to countries reporting high numbers of coronavirus cases. The Centers for Disease Control and Prevention added South Korea to its highest level of warning, urging citizens not to visit the country because of the rise in coronavirus cases on Monday. The agency also issued lesser warnings to practice enhanced precautions when traveling to Italy, Iran, and Japan, which have also seen a spike in cases. A low level warning to practice usual precautions is still in effect for Hong Kong.
New cases were reported Tuesday in Switzerland, Spain, Austria, and Croatia. The virus has now infected more than 80,000 globally, killing at least 2,700.
Mallory Moench is a San Francisco Chronicle staff writer. Email: [email protected] Twitter:@mallorymoench
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