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.
COVID-19
Delta, United extend elite status by a year, adjust other benefits
Frequent flyers at two of the world’s largest airlines received a reprieve over the weekend. Delta Air Lines and United Airlines announced major changes to their loyalty program, extended previously earned elite status and other benefits. The moves are dramatic, affecting millions of program members. [A]s coronavirus continues to dramatically impact travel across the globe, […]
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.
An eerie quiet over New York City: The flights are gone
The airspace around New York City is typically some of the busiest in the world. Three major airports crammed into a tiny space service thousands of daily aircraft movements. But these are not normal days.
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.
Spirit Airlines reportedly cutting 90% of flights
How deep can the US carriers cut? Spirit Airlines is now reported to be shedding 90%+ of its flights as it seeks to ride out the coronavirus market collapse.
Cancelled flights, vouchers and the airline cash flow crunch
Tens of thousands of cancelled flights. Millions of impacted travelers. Billions of dollars in limbo. And airlines are doing everything they can – including ignoring laws – to keep the money.
JetBlue plans 70%+ cut in April operations
JetBlue continues to trim its operations as demand shows no sign of a near-term recovery. The carrier now expects to schedule approximately 300 daily flights in April 2020, down from more than 1000 on the initial schedule. The move allows the for “maintaining a critical level of service across our network” according to an internal […]
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.
IATA anticipates recession, slower recovery, as COVID-19 impact drag on
IATA no longer expects a “V-shaped” recovery for airlines as the COVID-19 pandemic continues to grow. For the past several weeks the aviation trade group presented dire financial forecasts that included a sharp bounce back for the industry. In a media briefing this morning Brian Pearce, IATA’s chief economist, acknowledged that this time it is different, and not in a good way.