Not only flights and flight schedules are being affected, but airline CEOs are also taking pay cuts in the face of canceled flights and reduced passenger bookings. The latest is Alan Joyce of Qantas, who will take no salary through the end of the company’s fiscal year, ending June 30. The remaining of the management staff will take a 30% cut in salary.
The cuts are trickling down to the rest of the company’s staff. Many employees are being asked to take leave, either paid or unpaid.
Joyce said, “When revenue falls you need to cut costs, and reducing the amount of flying we do is the best way for us to do that.”
Joyce also expects the coronavirus crisis to subside, after which, the travel industry will recover. It is important that the company remains prepared to resume full operations as soon as possible.
Coincident with the virus outbreak, the good news for airlines is that fuel costs have dropped significantly following OPEC’s price war with Russia.