U.S. airlines cheer government relief, warn weak demand may still force downsizing
Delta Air Lines passenger planes are seen parked due to flight reductions made to slow the spread of coronavirus disease , at Birmingham-Shuttlesworth International Airport in Birmingham, Alabama, U.S. March 25, 2020. REUTERS/Elijah Nouvelage
Based on projections for the spread of the coronavirus and the global economy’s reaction, Chief Executive Oscar Munoz and President Scott Kirby said they expect “demand to remain suppressed for months after that, possibly into next year.” Before the global crisis, U.S. airlines were transporting a record 2.5 million passengers a day. Now planes are only 10% to 20% full and new bookings are showing 80% to 90% declines in traffic even after dramatic cuts in capacity, industry lobby Airlines for America said.
Airlines expect to learn the terms of the aid in the next five to 10 days, senior United executives said, and trust they will not be so onerous that airlines would not apply.U.S. airlines expect clarity on terms of payroll grants in 5-10 days: UAL senior executives
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