Airlines Prepare for a Very Painful Fall - As Many As 105,000 Jobs Could Be Lost Industrywide
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April 21, 2020 - by Justin Bachman and Mary Schlangenstein for bnnbloomberg.ca
U.S. airlines face a bleak future of depressed traffic and volatile revenue well into 2021, as the global economy transitions from the acute damage of a public health catastrophe into a potentially long recession.
Already a bumpy ride for the "Big Three" carriers, the journey promises to get worse this fall when billions of dollars in government assistance comes to an end. Several carriers, including Delta Air Lines Inc. and United Airlines Holdings Inc., have begun openly contemplating how they will shrink operations, while American Airlines Group Inc. is moving to shed more of its older planes.
By one analyst's count, as many as 105,000 jobs could be lost industrywide.
Airlines are barred from slashing jobs through Sept. 30 under the terms of a $50 billion government bailout, but they're already warning employees that cuts are almost inevitable. The planned contraction reflects a widespread belief that 2020 revenues could shrink to levels not seen in years.
Recovery will probably be a long-term affair, said Cowen & Co., which predicted that ticket sales may not rebound to pre-pandemic levels until 2025.
"The challenging economic outlook means we have some tough decisions...
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