Airline bailouts

After long wait, Air Canada gets relief package from government

A white Air Canada jet with blue tail taxis in front of large aircraft hangar.

The government of Canada on Monday agreed to a bailout package for Air Canada (TSX: AC), the nation’s largest airline, that includes a combination of low-interest loans and equity. The move comes one year after the U.S. came to the aid of domestic airlines facing a catastrophic loss of business because of the coronavirus pandemic and months of pleading from industry and labor for help to preserve the aviation sector.

The government will take a CA$500 million ($386.2 million) stake in Air Canada...

https://s29755.pcdn.co/news/after-long-wait-air-canada-gets-relief-package-from-government

Airlines, pilots plead for more federal aid to retain workers

A small white and blue jet on the tarmac with a yellow jet in the background.

U.S. airlines collectively hope to reach a breakeven point by the end of the year, but even with public aid and severe austerity measures, barring another round of grants, their precarious condition means they won’t be able to retain thousands of employees needed to scale operations when the economy picks up, industry officials said Tuesday.

Domestic carriers are currently burning an estimated $150 million of cash per day, with analysts projecting negative cash flow of $90 million per day in the...

https://www.freightwaves.com/news/airlines-pilots-plead-for-more-federal-aid-to-retain-workers

Airlines ask Biden-Buttigieg DOT to focus on COVID recovery

Line of planes in queue on taxiway wait to takeoff.

U.S. airlines, casting themselves as a vital cog in the economic recovery from the pandemic, appealed Monday to the incoming Biden administration for more flexible, risk-based COVID measures that will enable the safe revival of air travel and with it the revenues necessary to survive.

In a letter to Transportation Secretary-designate Pete Buttigieg obtained by FreightWaves, the Airlines for America (A4A) warned that some carriers, and thousands of their workers, may not be around to transport...

https://www.freightwaves.com/news/airlines-ask-biden-buttigieg-dot-to-focus-on-covid-recovery

Delta grows cargo revenue, narrows loss to $2.1B in Q4

A white Delta jet with blue tail against a blue sky looking up as it passes over on takeoff.

Delta Air Lines (NYSE: DAL) cranked up cargo revenue in the fourth quarter to $204 million, a 10% gain over the same period a year ago and a big improvement from the prior two quarters. Overall, the company met Wall Street expectations with an adjusted pretax loss of $2.1 billion on $4 billion in revenue.

The pretax loss of $2.53 per share came in slightly higher than the consensus among analysts of $2.50 and revenue was also above the estimate of $3.6 billion. In the third quarter, Delta’s...

https://s29755.pcdn.co/news/delta-grows-cargo-revenue-narrows-loss-to-21b-in-q4

Air Canada suspends routes as COVID restrictions bite travel

A gray/white Air Canada jet takes off on an overcast day with snow in the foreground.

Air Canada (TSX: AC) is reducing passenger system capacity by 25% and laying off 1,700 workers in the first quarter due to new Canadian travel restrictions aimed at curbing the resurgence of COVID-19, the company said Wednesday.

More than 200 employees in the airline’s regional express division are also being furloughed. Air Canada said it is working with unions to mitigate the impact on employees. The company released 20,000 workers in May.

The first-quarter reduction in flights will put...

https://www.freightwaves.com/news/air-canada-suspends-routes-as-covid-restrictions-bite-travel

Airlines reinstate collection of federal excise tax for air cargo

A large white jet getting loaded with cargo through side door. Airport worker with orange vest in foreground.

Airlines operating in the U.S. are once again collecting the federal excise tax on freight shipments that were suspended for most of last year to help the industry survive the economic fallout from the coronavirus pandemic.

The $2.2 trillion economic stimulus package known as the CARES Act provided an aviation tax holiday from March 28 through the end of 2020. Airlines were not required to charge the 6.25% tax on goods shipped by air or the 7.25% tax on passenger tickets, as well as other...

https://www.freightwaves.com/news/airlines-reinstate-collection-of-federal-excise-tax-for-air-cargo

Korean Air takeover of Asiana to create single national carrier

An Asiana jumbo jet with white fuselage and multicolored tail lifts off from runway.

Korean Air agreed Monday to acquire a majority stake in indebted rival Asiana Airlines as part of a South Korean government effort to stabilize the nation’s aviation industry from the devastating effects of the coronavirus pandemic.

The industry consolidation is designed to increase the competitiveness of both carriers at a time of limited travel demand by streamlining route operations, lowering costs and increasing the chance to acquire more takeoff and landing slots at Incheon International...

https://www.freightwaves.com/news/korean-air-takeover-of-asiana-to-create-single-national-carrier

Fixed costs to sink airlines unless governments intervene, IATA warns

Bright yellow Spirit planes at the airport gate.

The International Air Transport Association on Tuesday pleaded for more government aid to stave off bankruptcies and mass layoffs because fixed expenses far exceed paltry revenue streams and are quickly draining cash reserves. 

IATA downgraded its revenue outlook for next year because of the slow recovery from the coronavirus pandemic. Governments are closing borders and implementing other travel restrictions as infections surge at a record pace in Europe and the U.S. The industry association...

https://s29755.pcdn.co/news/fixed-costs-to-sink-airlines-unless-governments-intervene-iata-warns

Airline group issues distress call as projected losses reach $128B

A white jet takes off with other planes sitting in the foreground and buildings from downtown Houston in the background.

The International Air Transport Association on Tuesday warned that airlines are on track to lose nearly $130 billion this year — significantly more than the group’s June estimate of $84 billion — because of the coronavirus crisis, and that the aviation and travel sectors will be crippled for a long time unless governments increase financial aid.

The trade association said member carriers will burn through $77 billion in cash during the second half of 2020, almost $13 billion per month, despite...

https://s29755.pcdn.co/news/airline-group-issues-distress-call-as-projected-losses-reach-128b

United Cargo spared brunt of airline’s job cuts

United Airlines workers place box of seafood on conveyor belt to load plane on sunny day. United announced big job cuts.

United Airlines’ cargo division will lose fewer than 50 positions as part of a major reduction in workforce aimed at creating a smaller airline that can better cope with the crippling loss of passenger business caused by the coronavirus pandemic.

Chicago-based United (NASDAQ: UAL) on Wednesday informed employees that it planned to eliminate 16,370 jobs beginning Oct. 1. The involuntary furloughs are 20,000 fewer than officials estimated in early July because so many workers took voluntary...

https://www.freightwaves.com/news/united

+ More
Join Our Newsletter
Enter your email to receive a weekly round-up of shipping news.
icon
By subscribing, you agree with our privacy policy and our terms of service.