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.
Delta Air Lines
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.
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.
SkyMiles earn rates for LATAM flights now available
Looking to earn Delta SkyMiles on a LATAM-operated flight? The two carriers announced at the end of February that earning reciprocity would launch on 1 April 2020 but offered no other details. Now the earning chart is finally available.
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.