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Korean airlines expand traffic cuts on coronavirus

  • Market: Crude oil, Oil products
  • 19/02/20

Asiana Airlines, one of South Korea's two major air carriers, has expanded flight suspensions from China's coronavirus outbreak, reducing demand for jet fuel as traffic across Asia-Pacific slows.

South Korean airlines have been halting service on some of their routes to China since late January, as the virus scared away passengers during one of northeast Asia's busiest times of year for air traffic. The suspensions have also spread to southeast Asia.

Asiana has suspended 79pc of its flights to and from China, as well as 25pc of flights on southeast Asian routes. A notice on the company's website shows that flights to Bangkok and Hanoi will be suspended from 19 February through to 9 March at the earliest, while service to Singapore will be halted until 7 March. Other Incheon-southeast Asia routes, such as Phuket, Da Nang and Nha Trang, also will have reduced service, including a 3 March-15 March suspension to Chiang Mai.

Some of Asiana's China routes, such as Guangzhou, Shenzhen, Harbin and Beijing, are suspended through at least 28 March. Service also is being affected to destinations such as Saipan, Hong Kong and Taipei. Flights to Japan, which have been disrupted since a trade war began between Seoul and Tokyo last summer, remain at reduced levels, including Incheon-Fukuoka and Incheon-Okinawa routes.

The South Korea-Japan trade war had led to anti-Japan boycotts in South Korea, and reduced demand for travel between the countries. Air carriers were able to partially make up for losses by increasing flights to other destinations such as Vietnam.

Budget carriers Seoul Air and Jeju Air have halted all flights to China since late January. Asiana's rival, flagship carrier Korean Air, is expanding service cuts to China. One of two Incheon-Beijing flights was suspended from 4 February, and the second will be halted on 20 February. Both will be idle through at least 28 March. The situation is similar with service to Shanghai, with the second of two flights out of Incheon being suspended as of today, after the first flight was stopped on 7 February.

Executives at Asiana are taking pay cuts as high as 40pc to help weather the slowdown. All employees will be forced to take unpaid leave for 10 days, while unions are offering more cuts, including pilots taking voluntary unpaid leave of 15 days and giving up part of their bonuses.

South Korea's government earlier this week announced measures to help airlines during the travel slowdown, including offering loans and deferring airport fees. The transport ministry said air traffic is being reduced much more quickly than during previous health scares, such as the Sars and Mers outbreaks. South Korean airline flights to China have been cut by 70pc, to 162 per week, since last month.


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19/07/24

Weather sparks uncertainty for Vietnam’s bitumen demand

Weather sparks uncertainty for Vietnam’s bitumen demand

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Australian Enterprise gas drives Beach’s Apr-Jun output


19/07/24
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19/07/24

Australian Enterprise gas drives Beach’s Apr-Jun output

Sydney, 19 July (Argus) — Australian independent Beach Energy produced more gas and liquids during April-June than the previous quarter but ended its 2023-24 fiscal year to 30 June with output down against a year earlier. April-June sales gas production of 20.2PJ (539mn m³) was 10pc higher than the previous quarter's 18.3PJ and up on April-June 2023's 19.6PJ as it commissioned its Enterprise field in Victoria state's Otway basin. Beach's total 2023-24 production of 18.5mn bl of oil equivalent (boe) was 5pc down on the 19.5mn boe achieved in 2022-23, with natural field decline and rainfall resulting in Beach's oil output falling by 11pc from the previous quarter to 7,400 b/d from 8,300 b/d in January-March. The firm shipped a second 79,000t Waitsia cargo from the Woodside-operated 16.9mn t/yr North West Shelf LNG terminal during the quarter, consisting of Xyris gas plant production and third-party surplus gas sourced through swaps. It expects to achieve the first gas at its delayed 250 TJ/d (6.7mn m³/d) Waitsia gas plant in Western Australia's onshore Perth basin in early 2025 ahead of a 3-4 month ramp-up period. The firm has released a wider than usual production guidance for 2024-25 of 17.5mn-21.5mn boe, to account for uncertainty on the timing of Waitsia commissioning and output growth. Beach identified A$135mn ($90.5mn) in field operating cost savings and sustaining capital expenditure reductions as part of its strategic review findings released on 18 June. Beach confirmed it expects to recognise an A$365mn-400mn pre-tax impairment charge in its full-year results following reassessment of its Bass basin assets in Australia and Taranaki basin project in New Zealand. It is targeting new gas supplies of 150 TJ/d over the coming 12-18 months from the Enterprise, Thylacine West and Waitsia fields. By Tom Major Beach Energy results (mn boe) Apr-Jun '24 Jan-Mar '24 Apr-Jun '23 2022-23 2023-24 Production 4.8 4.5 5.0 19.5 18.2 Sales 5.4 4.8 5.7 20.7 21.3 Sales revenue (A$) 433 392 450 1,617 1,766 Realised gas price (A$/GJ) 10.30 9.70 9.50 8.80 9.50 Source: Beach Energy Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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Brazil's flood-hit airport to resume flights in Oct


18/07/24
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18/07/24

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'Urgent action' needed for UK to hit net zero goals


18/07/24
News
18/07/24

'Urgent action' needed for UK to hit net zero goals

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Australia’s Santos delays FID on Dorado oil field


18/07/24
News
18/07/24

Australia’s Santos delays FID on Dorado oil field

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