American airlines expect it to be the year before their business will overcome the coronovirus epidemic, even with more than $ 100 billion by tapping government aid and mortgage assets, including planes and frequent flight schedules.
The carrier said that they have enough cash to withstand a prolonged recession. But passenger demand will remain depressed for years, the chief executives of United Airlines Holdings Inkland Delta Air Lines Inc. said this week.
Thousands in HAWAII on pre-trip test day
Airlines have two primary challenges: reducing flight fear, which has taken hold during the epidemic and has strengthened itself to compete for a part of the air-travel business that has suddenly become too small .
Joint general manager Scott Kirby and President Brett Hart wrote in a memorandum to the airline’s corporate executives on Friday, “While the epidemic is the most dangerous crisis in the history of aviation, it has also provided us with an opportunity.”
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|UAL||United Airline HLDG.||34.16||-0.09||-0.26%|
|lentils||DELTA AIR LINES INC.||31.47||0.13||+ 0.41%|
United and Delta together lost $ 16.8 billion in the first nine months of the year. Both have reduced their scope of work by at least 20%, including more than 13,000 furloughs at United.
“Make no mistake — we’re still in the early mile of this marathon,” Delta chief executive Ed Bastian wrote in a memo on Thursday.
DELTA, United CEOS foreshadows business journey
The airlines had insisted for a second round of government assistance to prevent job cuts, expecting a better boom when demand returned. However, negotiations on a comprehensive relief package have been dragged on for months without any resolution.
American Airlines Group Inc. and Southwest Airlines Co. are to report third quarter results next week.
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|AAL||American Airlines Group Inc.||12.46||0.23||+ 1.88%|
|LUV||Southhood Airlines CO.||39.68||0.88||+ 2.27%|
The passengers have started coming back, but they are a trick, not a bounce. On Sunday, when nearly 1 million people passed through US airports, volumes were down more than 60% compared to the same time a year ago, and volumes are worse than most days.
And while most corporate journeys are still on hold and international borders are closed or subject to an array of entry requirements, some analysts see room for improvement for a while. Delta expects fourth quarter sales to be down 66% from last year’s level. United’s Mr. Kirby said that the specific level of travel demand would be capped at half the level until a vaccine was developed and widely available. He said business travel would not be back to normal before 2024.
Push to help more airlines as the industry gets more job seats.
As people resume some elements of their normal lives – in some cases going back to offices or school – airlines are stepping up efforts to convince them that it is safe to fly again.
This week was claimed by the results of a study of how the virus particles circulate during flights operated by Defense, United, the Boeing Company and others.
Using coughing mannequins that spew fluorescent tracer particles on a wide-body plane borrowed by United, the study found that aerosols are quickly diluted by aircraft ventilation systems and air filters. The study found that the risk for passengers on long flights sitting next to the infected person is also very low.
Caviates were: The study looked at what happens if one passenger is infected, not many, and does not account for the additional risks of passengers moving into the cabin or turning their heads to talk to each other.
Other academic researchers have documented close to four dozen instances when the Kovid-19 appears to have been transmitted during flights, many of them requiring widespread masks in the first pandemic.
Military officials and airline officials said they were encouraged by the results of the new study. On social media, United postponed the study, which Mr. Kirby said airplanes are “really safe.”
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Even if people can be persuaded to board planes, there are very few places to go.
Efforts to create travel bubbles in Asia have intensified, and growing cases within Europe have led to travel restrictions.
If the rate of infection continues in the United States, something similar may happen. During the summer, an upsurge in cases in some parts of the country intensified travel restrictions, reducing the cut to what seemed like the start of a rebound, leaving airlines to determine how. Are the best fliers. Today’s customers are booking last-minute, paying bargain-basement fares, and flying short distances.
“We’re really looking at where people want to go next week,” said Joe Esposito, Delta’s senior vice president of network planning.
United has monitored indicators such as occupancy rates in New York’s skyscrapers so that people can start traveling for work again, Chief Commercial Officer Andrew Nokela said on Thursday.
Carriers are also seizing the opportunity to grab space at once congested airports. This week Southwest said it would begin flying at major airports in Chicago and Houston, increasing its presence at secondary airports in both cities and moving to its hub against the United Nations.
Mr Kirby said that United had their own plans. He said the airline John F. of New York. Kennedy International Airport is set to return. Mr Kirby said for a long time that he believed United made a mistake in leaving JFK in 2015 before joining the company.
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