Airlines in trouble
United Airlines has secured $5 billion from the US government to stave off layoffs, but will almost certainly shrink the workforce when the six-month period guaranteeing no job cuts expires. It has already started planning for job cuts from October 1.
It talked of ‘tough decisions ahead’ as ‘travel demand is essentially zero’ right now.
Less than 200,000 people flew with United Airlines during the first two weeks of April this year, compared to more than 6 million during the same time in 2019, a 97 percent drop. It expects to ‘fly fewer people during the entire month of May than we did on a single day in May 2019.’
In general, Airlines Reporting Corporation (ARC) today released data showing that ARC-accredited travel agencies experienced an 86% year-over-year decrease in air ticket sales during March amid economic shutdowns. The consolidated dollar value of tickets sold by agencies last month totaled $1.3 billion, an $8 billion decrease when compared to last year.
With domestic and global travel impacted by government actions around the world, the total number of passenger trips settled by ARC in March for its agency customers decreased 62%. U.S. domestic trips decreased by 59%, while international trips were down 67%. The average U.S. round-trip ticket price was down from $487 in 2019 to $377 in March 2020.
Meanwhile Vietnam Airlines has sold its stake in Cambodia Angkor Air. The 49% stake was snapped up by ‘undisclosed buyers’, thought to be private equity investors. The remaining 51% share remains in the hands of the Cambodian government.
According to authorities, the sale doesn’t have any impact on the airline’s operations
More positively, Air India plans on resuming international flights in June.
All flights are grounded right now after PM Narindra Modi extended the nationwide lockdown until May 3. Following that, Air India will restart some domestic flights from May 4. Schedules will be phased in over time with large metro cities like Mumbai, Delhi, Kolkata, Chennai, and Bengaluru the first to be served.
Bookings for select domestic flights for travel from May 4, 2020, and for international flights for travel from June 1, 2020 onwards are open.
MMP
photo: pixabay.com
