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KY_EnviroGuy

(14,510 posts)
Wed Apr 22, 2020, 05:45 PM Apr 2020

Think things are bad for airlines? It's about to get worse

Source: AP News

The biggest and most profitable U.S. airline just posted its first quarterly loss in more than five years. Now things are going to get really bad.

Delta Air Lines Inc. reported Wednesday that it lost $534 million in the first three months of the year, when it suffered a glancing blow from the coronavirus pandemic during March.

The percentage of seats sold on U.S. airline flights dropped from 80.2% in January to 13.1% in the week of April 13-19, according to Airlines for America. That includes both domestic and international flights.

Demand for future air travel in the U.S. was down 98.4% in the second week of April compared with a year earlier, according to the industry trade group.

Read more: https://apnews.com/addf5ea5793c9ea24af60d3a2b5262fa



The article goes on to describe reductions of flights, Federal aid to airlines and the many challenges of the future.


KY............
27 replies = new reply since forum marked as read
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Think things are bad for airlines? It's about to get worse (Original Post) KY_EnviroGuy Apr 2020 OP
Cry me a River. safeinOhio Apr 2020 #1
Yep...still RIPPING people off because they want to carry luggage?? Bengus81 Apr 2020 #17
Yeah, Really RobinA Apr 2020 #26
Q2 earnings are going to be beyond brutal.... paleotn Apr 2020 #2
I hate JC Penny's getting closed down. The right wing will be joyous. jimfields33 Apr 2020 #12
interest rates are low, borrow money against their assets like ordinary people do nt msongs Apr 2020 #3
K&R SheltieLover Apr 2020 #4
Corporate travel is expensive and a lot of it unnecessary bucolic_frolic Apr 2020 #5
Most of those corporate meetings could have been Skyped or Zoomed FakeNoose Apr 2020 #21
I'm for high speed trains myself. I hate flying. Joinfortmill Apr 2020 #6
Unfortunately SoCalNative Apr 2020 #11
Exactly, or back to the US when I move there...nt a la izquierda Apr 2020 #13
Or a tunnel to Hawaii....... Bengus81 Apr 2020 #18
Jesus, this is going to be an economic blood bath. Initech Apr 2020 #7
Fear of the unknown, what will be left? sarcasmo Apr 2020 #15
Things are rough on all the airlines right now Marrah_Goodman Apr 2020 #8
Watch for Sky West Airlines Wellstone ruled Apr 2020 #14
Federal bail out money will kairos12 Apr 2020 #9
And installing payment terminals on bathroom doors dalton99a Apr 2020 #19
Gosh... If only they had tangible assets... Shipwack Apr 2020 #10
If you think the planes can be used, think again. They're already mortgaged. Angleae Apr 2020 #16
Most planes are leased. Mosby Apr 2020 #24
I'm breathing a sigh of relief Lefta Dissenter Apr 2020 #20
I was going to go on a round the world trip in May. I've gotten my points back from ANA, but.... Dial H For Hero Apr 2020 #25
At least for the US airlines, Lefta Dissenter Apr 2020 #27
No bailout for the USPS but, we can bailout the pigs at the trough. Hotler Apr 2020 #22
Great time to nationalize the large carriers. Mosby Apr 2020 #23

safeinOhio

(32,811 posts)
1. Cry me a River.
Wed Apr 22, 2020, 05:52 PM
Apr 2020

Delta has spent a quarter Billion so far this year in stock buy backs. Not one dime until they sell every share they have bought back in the last 3 years.

RobinA

(9,936 posts)
26. Yeah, Really
Thu Apr 23, 2020, 12:21 PM
Apr 2020

Couldn't happen to a nicer bunch of guys. Luggage? Pay a fee. Luggage too big? Pay an additional fee. Got legs bigger than a 5 year old? Pay a fee. Did we make you miss your connection? Tough s---, find a hotel and we'll call you. For a fee. Maybe. If not, you're on your own. Want to make pretty sure you make your connection? Add three hours transit time to your trip. It snowed anywhere in the US? All schedules subject to change or cancellation. Don't want to lose money when we don't provide the service you paid us for? Assume the risk, buy insurance. Price of oil go up? Pay an fuel surcharge tax. On top of last year's fuel surcharge tax, on top of three years ago's fuel surcharge tax. Did we lose your luggage? It's Friday afternoon, call us on Monday. It's Aer Lingus' fault anyway, you landed in Dublin for two hours.

paleotn

(18,041 posts)
2. Q2 earnings are going to be beyond brutal....
Wed Apr 22, 2020, 05:54 PM
Apr 2020

And not just for the airlines. I doubt Sears and Jaque Penney will be going concerns in 2021.

bucolic_frolic

(43,659 posts)
5. Corporate travel is expensive and a lot of it unnecessary
Wed Apr 22, 2020, 05:58 PM
Apr 2020

Junkets, fancy hotels, palatial corporate headquarters. All those costs reflected in the prices consumers pay. That's where corporate cash flow comes from - the public. Corporations live in corporate parks, skyscrapers, to impress everyone.

FakeNoose

(33,035 posts)
21. Most of those corporate meetings could have been Skyped or Zoomed
Thu Apr 23, 2020, 09:33 AM
Apr 2020

While face-to-face meetings are occasionally necessary, most of the corporate travel these days can and should be avoided. Holding meetings and conventions at Mar-a-Lago type resorts, that's a thing of the past.

People are finally waking up to this.


Joinfortmill

(14,590 posts)
6. I'm for high speed trains myself. I hate flying.
Wed Apr 22, 2020, 06:06 PM
Apr 2020

The air is unhealthy, the service sucks, flight attendants are rude, and they beat your luggage to death.

Initech

(100,195 posts)
7. Jesus, this is going to be an economic blood bath.
Wed Apr 22, 2020, 06:12 PM
Apr 2020

Air travel will come back when life resumes, assuming we have life left to resume.

Marrah_Goodman

(1,586 posts)
8. Things are rough on all the airlines right now
Wed Apr 22, 2020, 06:12 PM
Apr 2020

Delta has cut hours by 25% to try to avoid layoffs and have helped employees through the unemployment process so they can get the unemployment for those ten hours a week plus the extra 600. They have also offered voluntary furloughs for people who want it with all their benefits left intact. Since my bf is 65 and has medical issues he chose to take a 1 year furlough. The company has been pretty good about trying to find solutions and make things easier for the employees. My guy is hoping to be offered a nice early retirement package.

At his particular airport I think he said they do 148 or 158 flights a day or maybe that was on his shift and that is now reduced to ten mostly empty ones.

 

Wellstone ruled

(34,661 posts)
14. Watch for Sky West Airlines
Wed Apr 22, 2020, 06:58 PM
Apr 2020

who runs Delta and United short routes to start screaming. Mike Lee and Willard Romney will make the noise.

Shipwack

(2,195 posts)
10. Gosh... If only they had tangible assets...
Wed Apr 22, 2020, 06:26 PM
Apr 2020

... they could get a loan from a bank at near 0% interest to tide them over. What could they use as collateral, I wonder... hmmm

Angleae

(4,510 posts)
16. If you think the planes can be used, think again. They're already mortgaged.
Wed Apr 22, 2020, 11:23 PM
Apr 2020

Except the really old planes that have been paid off over time (and aren't worth a whole lot).

Lefta Dissenter

(6,623 posts)
20. I'm breathing a sigh of relief
Thu Apr 23, 2020, 09:29 AM
Apr 2020

We were supposed to leave for Japan yesterday, to visit our only grandchild (and her parents). It’s taken me about three weeks of phone calls and monitoring, but I finally received my refund for those tickets. I didn’t want to accept a voucher for fear we wouldn’t be able to travel before the airline, or we, went belly-up.

I’m so disappointed we can’t go, and we have no clue when they’ll be able to visit home, but at least we didn’t lose our $$ in the meantime.

 

Dial H For Hero

(2,971 posts)
25. I was going to go on a round the world trip in May. I've gotten my points back from ANA, but....
Thu Apr 23, 2020, 11:52 AM
Apr 2020

There was one segment for which i paid cash from Australia to New Zealand and back on Air New Zealand. They're offering me a voucher, but refusing to give me a refund.

Lefta Dissenter

(6,623 posts)
27. At least for the US airlines,
Thu Apr 23, 2020, 03:10 PM
Apr 2020

they MUST give a refund if the flight schedule has been changed more than an hour or flight canceled. I have no idea what the policies are for other airlines. Schedule change was the basis for my request for refund rather than a voucher, and they immediately acknowledged that we qualified for that.

And I'm sorry that you're missing out on that wonderful trip.

Hotler

(11,526 posts)
22. No bailout for the USPS but, we can bailout the pigs at the trough.
Thu Apr 23, 2020, 09:53 AM
Apr 2020

Make the airlines and other corporations apply for loans just like Steve Mnuchin told the post office to do.

Mosby

(16,459 posts)
23. Great time to nationalize the large carriers.
Thu Apr 23, 2020, 10:26 AM
Apr 2020

Americans already subsidize virtually every aspect of air travel.

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