Airlines have drastically cut the number of flights
to match demand and save cash, but even with
far fewer flights, most seats are empty.
United Airlines says it is losing $100 million a
day. Delta Air Lines says it is burning through
$60 million a day. All the leading U.S. carriers
have applied for federal grants to cover payroll
costs through September and some are likely to
seek federal loans or loan guarantees.
Even if they get taxpayer help, the airlines
warn, they will be smaller on the other side of
the pandemic.
The recovery in air travel — whenever it occurs
— could depend on many factors including
social-distancing rules and the state of the
economy, which is staggering with 10 million
people filing new claims for unemployment
benefits in the last two weeks.
Air travel is much more affordable and accessible
to the masses than it was in the 1960s. Still,
both leisure and business travelers have above-
average incomes.
“Theoretically, these consumers should be
better-positioned financially to be able to
travel again,” Harteveldt said, “but we are seeing
people at all income levels and all ages affected
by job loss or reduction in hours or working for
companies that have closed.”