Interesting question.
At the time of the SAARS outbreak, Statistics NZ figures showed visitor numbers from Asia fell by 26.8% & from the US & by 9.7% compared to the same month previous year. AIR had to reduce capacity on Asian routes for 6 months as load factors dropped by 5.7%.
The Ebola outbreaks occurred mostly in Democratic Republic of Congo & West African countries such as Liberia, Sierra Leone, Guinea & Nigeria none of which we have direct flights to or significant travel between.
With around 30 flights a week between NZ & China and over 400,000 international arrivals a year from China, am sure the govt & airline & tourism industry keeping a very close watch on this latest epidemic.
However, to keep some perspective, 17 deaths out of a population of 11.8 million in Wuhan so far.
I've always thought contagion & resulting panic is one of the biggest risks to airline industry & it's not if but a question of when.
Apart from the travellers, how would the company deal with a situation where pilots and cabin crew refused to expose themselves to the risk by flying to a destination. I don't believe the airline could impose that on anyone.
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The disestablishment of these hedges really expensive eh ...so previous years profits have been ‘overstated’ under of guise of lowering earnings volatility
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Best wait see what how the accounts actually read when published.
All these accounting changes seem to take from one part of the accounts and give back to another.
Makes the true picture a little more fun to decipher.
If this happens I would expect N.Z. to follow suit very quickly.
Ecclesiastes 11:2: “Divide your portion to seven, or even to eight, for you do not know what misfortune may occur on the earth.”
Ben Graham - In the short run the market is a voting machine but in the long run the market is a weighing machine
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