The airline industry is in crisis.Three months after the first cases of COVID-19 in the United States the airline industry is going
through its worst moments in history.
By mid April, 17,000 aircrafts were parked around the world, or two thirds of the global feet, according to a BBC report. Similarly, Bloomberg
reported that “total capacity
for international and domestic routes has dropped to 29.8 million seats, down more than 70% from January”
Just before COVID-19 cases in the United States reached 200,000 at the end of March, stock value for American Airlines had
fallen 36%, similarly for Delta Airlines, whose stocks
value fell 38%. By this time industry revenue had fallen by 13%
to 4.98 billion dollars USD.
According, to Deloitte,
who researched the airline industry's future perspective, the industry
will be able to recover with quick and coordinate action by stakeholders. Nonetheless, people's willingness to travel and hop onto a plane where a cabin
is shared with hundreds of other people, still requires some readjusting and airlines
adapting to provide new safety norms.
NYC News Service
Crisis in Airline Industry
by Violetta Nespolo and Leonardo March
Stock and Airfares in February, March and April
COVID-19 CASES:
AAL=American Airlines, ALK=Alaska Airlines,
DAL=Delta Airlines, SWA=Southwest Airlines, UAL=United Airlines
Airfares are all averages in $US, from NYC to selected destinations.
Airfares are all averages in $US, from NYC to selected destinations.
Please Select
The economic downturn for the industry is reflected in pilots, cabin crew and staff being placed on leave, or fired. Forbes reported
that “Air Canada will lay off 5,100 of its cabin crew,” Air New Zealand will let go one third of its workforce
and Norwegian Air would “temporarily layoff 10,000 employees.”
On March 27, 2020, President Trump signed into law the Coronavirus Aid, Relief, and Economic Security Act” or the “CARES Act.” The law would provide $50 billion, as grants and loans, to the American airline industry. Airlines that receive funding should protect their workers from “from involuntary furloughs or pay rate reductions through Sept. 30, 2020.”
Delta, Southwest, Alaska Airlines, American Airlines and United Airlines will receive Cares Act funding.
On March 27, 2020, President Trump signed into law the Coronavirus Aid, Relief, and Economic Security Act” or the “CARES Act.” The law would provide $50 billion, as grants and loans, to the American airline industry. Airlines that receive funding should protect their workers from “from involuntary furloughs or pay rate reductions through Sept. 30, 2020.”
Delta, Southwest, Alaska Airlines, American Airlines and United Airlines will receive Cares Act funding.
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