Airlines at center of storm as coronavirus spreads

LONDON (Reuters) – European airlines stepped up their warnings over the coronavirus outbreak on Friday, with British Airways-owner IAG and Finnair flagging a hit to profits and easyJet reporting a big drop in demand into and out of a virus-affected region in Italy.

All three airlines also joined rivals in announcing cost cuts to help weather a storm of unknown severity and duration.

A new coronavirus, which emerged late last year in China, has sent demand for travel plunging in recent weeks as the outbreak has spread around the world, raising fears of a pandemic that could plunge the global economy into recession.

IAG, which also owns Iberia and Aer Lingus, usually gives an earnings forecast at this time of year, but said the ongoing uncertainty over the impact and duration of the outbreak meant it…