British Airways boss Willie Walsh has warned that the coronavirus will push struggling airlines "over the edge".
The chief executive of BA's parent company owner International Airlines Group (IAG) spoke out as it warned that the outbreak has already impacted on earnings. It came a day after a court ruled against plans to build a third runway at Heathrow.
IAG said it has seen lower demand on Asian and European routes and weaker business travel across its network due to the cancellation of industry events and corporate travel restrictions.
Walsh said: "We are well able to adjust to this situation because our business is in great shape. It's the failing airlines who will be most affected by this... so without question, there will be more consolidation as a result."
The firm said that uncertainty around the coronavirus outbreak means it is currently unable to provide accurate profit guidance for 2020.
IAG suspended flights to mainland China in January as a result of the outbreak. Earlier this month British Airways also reduced its Hong Kong service and will reduce the regularity of its service to Seoul in coming weeks.
The update came as IAG reported that operating profits for 2019 fell by 33.6% to £2.6 billion. Meanwhile, passenger revenues increased by 5% to £22.4 billion on the back of a 4% increase in capacity.
Walsh said he was "not surprised" by the Heathrow ruling but is looking to the Civil Aviation Authority (CAA) to intervene.
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