February 27, 2020 / 2:41 PM / a month ago

UPDATE 1-Israel's El Al sees rev loss from coronavirus, suspends Italy flights

(Adds flight suspensions to Italy, Thailand, delay of Tokyo route launch)

JERUSALEM, Feb 27 (Reuters) - El Al Israel Airlines on Thursday said it expects a loss in revenue of $50-$70 million in the January-April period due to the global coronavirus outbreak and suspended flights to Italy and Thailand.

The estimate did not include the impact of a new travel warning from Israel that barred entrance from foreigners arriving from Italy.

Of the drop in sales, $40-$50 million will be in the first quarter. Israel’s flag carrier said the loss will be partly offset by a decline in operating expenses, so the final impact on its January to April results will be $25-$45 million, of which $15-$30 million will be for the first quarter.

El Al said it will suspend its flights to Italy, including Milan and Rome, starting Feb. 28 and until March 14 while its flights to Bangkok will be halted from March 2-27.

The airline will also delay the launch of a new route to Tokyo from March until April 4. It also extended a suspension of flights to Hong Kong and Beijing until May 2.

Shares in El Al were down 9.4% in late afternoon trading. (Reporting by Ari Rabinovitch and Tova Cohen)

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below