Airline explains categories of revenue losses due to coronavirus

PNG Air Ltd says like most businesses in the country and most aviation businesses worldwide, the airline has been affected by the Covid-19 pandemic.
According to the airline, this was also due to actions taken by governments in response to the pandemic which in PNG’s case has been the state of emergency (SOE).
“The immediate effects of the state of emergency declaration are that domestic regular passenger transport flights and regular charter passenger flights have been suspended,” PNG Air said in a market release.
“The airline’s dedicated freighter aircraft is able to operate, and some ad hoc charter flights have operated to evacuate personnel from mine sites.
“The operating flights equate to approximately one day out of a normal week’s flying.
“The flight suspensions were imposed for a period of 14 days, expiring on April 6.
“It is not known at this time whether the suspensions will be extended.
“There are two and possibly three categories of revenue losses as a result of the pandemic and these flight suspensions.
“The first being revenue lost during the period leading up to the declaration of a state of emergency; the second being losses during the suspensions themselves; and, the possible third being the continuing reductions in flying that may after the suspensions are lifted, because of ongoing effects on the overall economy, possibly continuing limits on movement and social distancing concerns.
“It is difficult to estimate this third category of possible losses at this time as there are too many variables at play.
“While the airline’s revenue is seasonal, the position is complicated by reductions in flying leading up to the suspensions.”