Delta, other airlines plan for swine flu pandemic

Atlanta-based Delta Air Lines and other major carriers have contingency plans for how to manage their operations in the outbreak of a pandemic, but industry observers are closely watching to see what impact swine flu could have on carriers’ finances.

Before this week, Delta and other carriers had already seen a significant drop in international travel because of the recession.

Six years ago, the outbreak of SARS, or severe acute respiratory syndrome, contributed to an 18.5 percent drop in global passenger traffic in April 2003, along with declines in later months.

“What we saw in the SARS episode is it took several weeks of flying empty before airlines started to cancel [flights] in advance,” said Port Washington, N.Y.-based airline consultant Robert Mann.

It’s too early to tell what impact swine flu could have on the airline industry.

Investors reacted to news of the outbreak Monday, with Delta shares falling 14.3 percent and AirTran shares falling 6.6 percent. Standard & Poor’s Ratings Services in a statement said the outbreak of swine flu raises the risk that airlines could suffer a steep drop in international traffic.

The U.S. Centers for Disease Control and Prevention in Atlanta on Monday recommended no nonessential travel to Mexico, while Delta, AirTran and other carriers have offered to waive fees for travelers who want to change their travel plans to Mexico.

Delta flies to Mexico City and other destinations in Mexico, though it is not one of the largest carriers to the country. AirTran Airways started flying to Cancun in February, and it said at this point it is continuing the flights. “We evaluate every market on a daily basis, and we have to make decisions that are best for the airline,” said AirTran spokesman Christopher White.

If the situation worsens, airlines may waive broader flight cancellation fees, Mann said, which could have a more significant impact on airlines’ finances.

A European Union health commissioner’s comment urging Europeans to postpone nonessential travel to the United States and Mexico could have an effect on carriers, including Delta.

The International Air Transport Association, which developed guidelines for managing communicable diseases, has recommended that airlines review their preparedness plans.

Hartsfield-Jackson International Airport in 2006 ran through a drill on how to handle an avian flu outbreak. The airport has a special area for incoming flights that need to be handled away from the main terminal and a CDC quarantine facility on Concourse E.

“We feel that we are well-prepared at the airport, because we do have a comprehensive pandemic plan should we need it,” said airport spokesman John Kennedy.