U.S. Airlines Could Lose $250B in 2020 as Demand Plummets Amid COVID-19 Outbreak

Airlines impacted by the COVID-19 outbreak sweeping the nation could see revenues decline by a quarter of a trillion dollars in 2020 as demand plummets and as governments tighten travel restrictions.

Passenger volume is down at least 85% according to multiple airlines, CBS News reported Sunday.

American Airlines announced heavy capacity cuts on Friday, suspending more than half its capacity for April compared to 2019 and 80% of its capacity in May.

“These changes are due to significantly decreased customer demand and government travel restrictions related to coronavirus,” American Airlines said in a statement.

The $2 trillion relief package signed by President Donald Trump on Friday includes $50 billion to boost airlines impacted by the virus’s economic fallout. At least $25 billion will be available for loans to airlines, and $25 billion in grants that will help airlines pay workers through September.

The package requires airlines to maintain service, not furlough employees, not buy back stocks the year they accept loans and for one year thereafter and to limit executive compensation.

Delta Airlines, which has also significantly reduced its flights, announced Friday that it would support medical professionals by offering them free flights to coronavirus hotspots.

Eligible medical volunteers, Delta said, will be able to book round-trip flights for free to Georgia, Louisiana and Michigan where they will work with state and local governments and be deployed to hospitals in the hardest hit areas. Delta is considering expanding the program to California, New York and Washington.

“We are witnessing the heroic efforts of our medical professionals around the world as they combat COVID-19, and we have deep gratitude for their selfless sacrifice,” said Bill Lentsch, Delta’s chief customer experience officer. “Air travel plays a significant role in making connections in both good and challenging times, and our hope is that offering free travel gives more of these professionals the ability to help in critical areas of the U.S.”

Related Content:

———

©2020 MassLive.com, Springfield, Mass.

Visit MassLive.com, Springfield, Mass. at www.masslive.com

Distributed by Tribune Content Agency, LLC.