Global travel industry in agony as airlines cut flights, coronavirus grows

American Airlines Group Inc and United said they would continue normal flights to and from Europe for the next week but would be reducing capacity to Europe.

The fallout from the coronavirus spread across the Pacific on Friday, with travel companies in Australia and New Zealand issuing profit warnings as US airlines rushed to cut flights to Europe in the wake of new US travel restrictions.

US travel curbs on much of continental Europe announced by President Donald Trump on Wednesday evening deepened the sector's misery that began after the virus emerged in China late last year and reduced traffic.

United Airlines Holdings Inc warned of US travel disruption as the virus spreads domestically and major tourist attractions like Walt Disney Co's theme parks in California and Florida said they would close.

American Airlines Group Inc and United said they would continue normal flights to and from Europe for the next week but would be reducing capacity to Europe by around 50 per cent in April.

American also said it was cutting international capacity by 34 per cent for the summer travel season and accelerating the retirement of its Boeing Co 757 and 767 planes.

Delta Air Lines Inc also said it would significantly reduce its US-Europe schedule after Sunday as it continues to watch customer demand.

Several Latin American countries stepped up measures to slow the spread of the coronavirus, halting flights to and from Europe. More than $825 million was wiped off the value of listed Indian airlines on Thursday after the government said it was restricting visit visas.

The International Air Transport Association (IATA), a global industry group representing airlines, called on governments to consider extending lines of credit, reducing infrastructure costs and cutting taxes.

"There is a heightened concern there will be increased airline bankruptcies in 2020 given the fallout from the coronavirus," Cowen analyst Helane Becker said.