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Cathay Pacific has said it expects a "substantial" loss in the first half of this year as the impact of the coronavirus outbreak takes it toll.

The Hong Kong carrier also saw a 28% drop in 2019 profits as it struggled during the city's political protests.

The airline is now battling with the fallout of the virus as passenger numbers plummet.

Chairman Patrick Healy said the first half of 2020 was expected to be "extremely challenging financially".

The development comes with thousands of flights already cancelled worldwide, as airlines struggle to cope with a slump in demand caused by the coronavirus outbreak.

British Airways, Ryanair and EasyJet have all cancelled flights to and from Italy until April, while Norwegian Air and American Airlines have also announced significant cuts to services.

Calling 2019 a "turbulent year", Mr Healy said he expected "our passenger business to be under severe pressure this year and that our cargo business will continue to face headwinds".

While Cathay Pacific has reduced flights to help save costs, "we expect to incur a substantial loss for the first half of 2020," he added.

The airline reported a net profit of HK$1.69bn (£170m) for last year, down from a HK$2.35bn profit in 2018.

In other developments:

Dutch airline KLM is cancelling all its flights to and from Milan, Venice and Naples until 3 April

Austrian rail operator OBB has announced it is suspending all trains in and out of Italy - which has more than 10,000 confirmed cases of the virus - until further notice

Seat, the Spanish unit of car-maker Volkswagen, is considering temporary lay-offs at its Barcelona plant

Ride-hailing app Uber says it plans to offer an as-yet unspecified amount of financial assistance to its drivers who have to self-isolate for up to 14 days

Embattled sector

The airline industry faces a loss of revenue of up to $113bn this year, according to aviation trade body IATA, as thousands of planes are grounded amid travel restrictions across the globe.

After UK-based airline Flybe went into administration last week, analysts are warning of more failures to come for the embattled airline industry.

Earlier this week, Korean Air warned the coronavirus outbreak could threaten its survival, in a memo sent to employees.

The global spread of the coronavirus has hit both holidaymakers and business travellers. The Global Business Travel Association said on Wednesday that 43% of its member companies have cancelled business trips booked for this month.