The State of US Aviation

By Jason Appleby | July 24, 2020

As the Coronavirus tightens its grip on the US, airlines are starting to struggle. The pandemic is not just affecting the US; COVID-19 has the world under its tightening grip.

We recently reported on how the pandemic has affected other airlines here.

Alaska Airlines to Furlough Staff

Alaska Airlines has reported that in Q2 of 2020, they have struggled significantly. While demand has been low, the airline has managed to save around 70% of its average expenditure. The saving hasn’t helped outweigh the losses of low demand; Alaska Airlines reported a loss of over $200 million.

Alaska Airlines Boeing 737

So, what will the airline do next?

The carrier is looking into the option of furloughing up to 7,000 employees from October even with many employees currently on a voluntary leave of absence.

Alaska Airlines CEO and President, Brad Tilden stated:

I’m very confident that we’re taking the right steps to get us through the crisis and to ensure our long-term success. Our crews and workers have continued to provide our guests with remarkable care … changing policies have introduced a great deal of complexity to our operation, and our people have handled this with poise and grace, educating our guests about the in-airport and on board policy changes and providing them the best and safest experience possible.

American Airlines Also Makes Huge Loss in Q2

American Airlines (AA) also announced today that it had made a loss for the second quarter of 2020. AA suffered a substantial loss of $2.1 billion. Revenue for the airline was down 86.4% from $11.9 billion to $1.6 billion.

N974AN American Airlines Boeing 737-823
Las Vegas – McCarran International (LAS / KLAS)| (C) Tomás Del Coro

This time last year, the airline pocketed a $662 million net profit. This performance from 2019 is not expected to be replicated until at least 2022.
In a recent statement, American Airlines said:

Passenger demand and load factors have improved since bottoming out in April but continue to be significantly below 2019 levels. While May and June revenue trends were encouraging, demand has weakened somewhat during July as COVID-19 cases have increased.

What do you think? Will many more airlines succumb to the Coronavirus pandemic? Let us know in the comments.

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