US airlines will need to fly far more than demand dictates if they want to receive CARES Act funding for employees. But the obligations are reduced in the Department of Transportation’s (DOT) final order compared to the initial proposal. The DOT took feedback from all stakeholders into account in trying to strike an appropriate balance of service versus demand, slightly revising the rules.
American Airlines
Who wants what? How the US airlines are responding with CARES Act funding on the line
With tens of billions of dollars in federal funding on the line the DOT’s rules about service obligations under the CARES Act could dramatically affect airlines’ cash flow in the coming months. The divide in views between the large and small players is impressively wide.
US airlines cut deep, but not deep enough
With loads teetering against the single digits the US carriers must cut deeper to rationalize their operations. And there are few good justifications for not making that move.
US carriers cut frequencies, not destinations as they seek federal funding
Getting that federal bailout cash means keeping all existing destinations in service for the US airlines. That could prove troubling for some as the cutbacks are already in motion.
Converting to cargo: Putting passenger planes to use in the COVID-19 era
Passenger demand may not exist right now for airlines but global supply chains still demand the cargo capacity those aircraft represent. Passenger aircraft are being pressed into service as freighters, filling their belly space with goods to fly across the globe. And, in some cases, even a bit more.
Airport lounges shutter as airlines slash capacity
The lounges are closing. Not every airline and not every location, but for the trickle of passengers still flying opportunities to duck into a private space in the terminal for a bit are starting to disappear.
Gogo looks to ride out coronavirus-related dip in demand
The final few months of 2019 delivered strong numbers for inflight connectivity provider Gogo. The company saw revenues improve in the business aviation and global segments while the North American market held up pretty well. Things continued looking good into early 2020. But since the beginning of March, similar to airline demand, Gogo saw a “significant decline” in Asia followed by a “more pronounced decline” in recent days.
Beyond route cuts, airlines initiate extended suspension of operations
A week ago this level of cuts to airline route networks seemed beyond the pale. Now, it appears to be just the start.
Two key takeaways from American’s latest schedule cuts
American Airlines’ route change announcements last night are as much an indicator of the company’s expectations for the years to come as they are the immediate needs of the airline. It is an interesting shift in how the global industry is addressing the COVID-19 challenges.
American Airlines slashes schedule, increases flexibility for customer rebookings
American Airlines joined the Summer 2020 schedule cut party overnight, announcing several international routes that will not operate until at least October and a 7.5% cut in domestic capacity for April. The carrier also dramatically improved its change fee waiver policy, making it easier for passengers to reconsider otherwise non-refundable travel plans.