JetBlue expects new and extended spending cuts as well as increased debt headed in to 2021 as its recovery remains “volatile” and Thanksgiving came up short of targets.
COVID-19
JetBlue to stop blocking seats in January
JetBlue was one of the last carriers to keep seats blocked on board. Headed into the new year, however, that era will come to a close. As of 8 January 2021 all seats on board will be available for sale.
Canada plans aviation bailout, so long as passengers get refunds
Canada is on the cusp of pushing serious funds into its aviation industry, a move necessary to keep the planes moving as COVID-19 continues to suppress demand in the country. But Minister of Transport Marc Garneau added a caveat to the plan, one that could make passengers even happier than the airlines: Refunds must be issued for canceled flights.
Interjet lacks fuel, cancels flights for two days
Mexico’s Interjet cancelled all of its flights on Sunday and Monday, citing COVID19’s effect on cash flow and maintenance requirements. The carrier hopes to resume service on Tuesday, November 3.
Allegiant ditches advertising, improves conversions
As part of its cost-cutting efforts discount carrier Allegiant slashed its marketing budget in recent months. But conversion rates are up, and the company decided to make some of the cuts permanent as it thinks it found a better way to sell seats.
United launches pre-flight COVID testing to London
United Airlines is adding a new sort of pre-flight check to one of its routes: COVID-19 testing. All passengers (over the age of 2) on one of the company’s Newark-London flights will be required to take a test at the airport prior to departure. The test will be free of charge to travelers, with results returned before departure.
Global Eagle charts a new course out of Chapter 11
As Global Eagle finalizes its financial plans for emergence from Chapter 11 Bankruptcy protection there are plenty of questions about what the future of the company will look like. Fortunately the most critical issue is easy to answer: The Albatross test aircraft remains part of the operation. Beyond that, however, the company sees the current industry crisis as an opportunity to reinvent what the inflight connectivity and entertainment business looks like.
A fleet of salvage-priced planes
Does it matter that airlines are flying planes worth more in the scrap yard than they are to a new owner? Probably not, but United’s latest effort to secure a $3bn loan is an interesting insight into the world of aircraft valuation considerations.
Researchers link 59 Irish COVID cases to inbound long-haul flight
Nearly 60 cases of COVID-19 infection, including one ICU admission, were tied to a single long-haul flight arriving in Dublin over the summer. While stopping short of explicitly confirming the transmission on the plane, the report notes “the potential for in-flight/airport transmission exists in this outbreak.”
Cathay Dragon shuttered, 8,500 jobs eliminated
Cathay Dragon is the latest airline to be grounded as a result of COIVD-19, part of a massive restructuring at the Cathay Pacific Group as it seeks to stabilize its operations. In a stock exchange filing on Wednesday the company announced that the regional arm “will cease its operations with effect from today.”