Business

Major American companies are reeling from coronavirus

Posted February 24, 2020 7:06 p.m. EST

— A growing number of major American companies are saying coronavirus is hurting their business.

Late Monday, United Airlines announced that it has suspended flights between the United States and four destinations in China, routes that represent approximately 5% of the company's planned capacity, because of the virus.

The airline said near-term demand for flights to China has fallen to near zero, and the demand for flights to the rest of its trans-Pacific routes has declined 75%. The company added that it's managing its business "to minimize the operational and financial disruption."

The canceled flights were between the United States and Beijing, Chengdu, Shanghai and Hong Kong will be suspended through April 24. United said that despite these "short-term" issues, the company believes "it will be in a strong position to deliver earnings growth in 2021 and beyond."

Also on Monday, Mastercard updated its first quarter and full year 2020 revenue outlook, also because of the impact of the Coronavirus.

If the trends continue through the end of this quarter, Mastercard's sales growth in the first quarter will be approximately 2 to 3 percentage points lower than it announced late last month, the company said in a press release. Mastercard said it plans to provide further updates on its first-quarter earnings call.

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