HKIA just published figures for January air traffic. It notes,
“Traffic figures at Hong Kong International Airport (HKIA) saw decreases in January 2020. During the month, HKIA handled 5.7 million passengers and 33,210 flight movements, representing year-on-year decreases of 11.7% and 9.1%, respectively. Cargo throughput dropped 10.4% compared to the same month last year, to 359,000 tonnes.
Overall passenger traffic to/from Mainland China, South Korea and Southeast Asia recorded the most significant decreases in January. Visitor traffic remained weak, showing a year-on-year decrease of 43%. However, travel by Hong Kong residents saw a surge during the Chinese New Year holidays, amounting to a monthly growth of 25% year-on-year.
Cargo throughput declined due to closure of factories and businesses in Mainland China during the Chinese New Year holidays. The decrease in cargo was mainly attributed to the 15% and 10% drops in imports and transshipments, respectively. Exports decreased by 9% compared to the same month last year. Amongst key trading regions, traffic to/from Southeast Asia and North America decreased most significantly in the month.”
That’s got to hurt. It is strange how markets are behaving so positively to the impacts here. Depending on the length of such a slowdown, how long can company cash flow last and when do we see the first bankruptcy of a travel/cargo company- land, air or sea as a result of coronavirus.
Expect that cruise companies report mass cancellations after the horrendous optics of passengers being confined to their quarters for weeks on end.