The International Air Transport Association (IATA) is frustrated that governments aren’t doing more to help the airline industry survive the coronavirus pandemic. It is pleading for quick reopening of borders and assistance to help airlines maintain liquidity.
International passenger demand fell 91.9% in July compared to the same month last year — a slight improvement from the 96.8% contraction the industry recorded in June. International capacity fell 85.2% year-over-year. Overall, global...
Delta Air Lines, American Airlines and Alaska Airlines (NYSE: ALK) followed United Airlines’ (NASDAQ: UAL) lead on Sunday in permanently eliminating unpopular fees for changing reservations on all but the cheapest tickets. The moves are the latest survival tactic by airlines, which are planning to involuntarily furlough tens of thousands of workers next month without further government aid.
Domestic leisure bookings marginally improved in the past week, down 52% from a year ago compared to 55%...
American Airlines (NASDAQ: AAL) notified employees in a memo Tuesday that it plans to eliminate 19,000 jobs on Oct. 1, unless Congress renews the emergency coronavirus assistance that helped airlines retain staff for the past six months.
The news comes a day after Delta Air Lines (NYSE: DAL) indicated involuntary separations are coming for 1,941 pilots, according to Reuters.
Airlines, struggling to survive, are transforming into much smaller organizations with passenger travel not expected to...
https://s29755.pcdn.co/news/american-airlines-to-chop-19000-jobs
Reflecting the financial distress of its airline members in the midst of the coronavirus pandemic, the International Air Transport Association is planning to reduce its worldwide staff by a fifth, a source at the trade association said.
IATA represents nearly 300 airlines operating scheduled and non-scheduled air service.
Airlines around the world are expected to lose $84 billion in 2020 and are slashing hundreds of thousands of people from payrolls. Airlines have made radical cuts to...
https://s29755.pcdn.co/news/exclusive-largest-airline-trade-association-to-reduce-workforce-20
American Airlines (NASDAQ: AAL) on Wednesday informed 25,000 employees that their jobs could be eliminated after Oct. 1, when federal money covering wages for airline workers runs out.
Company executives say furloughs are necessary because the airline will have an oversupply of workers as it operates a significantly reduced schedule to match the downturn in travel caused by the coronavirus pandemic.
“We hate taking this step, as we know the impact it has on our hardworking team members. From the...
https://s29755.pcdn.co/news/american-airlines-warns-of-25000-job-cuts
Virgin Atlantic Airways said an emergency funding package and plan to restructure operations will keep it afloat as it tries to withstand a steep loss in business stemming from the coronavirus pandemic.
The British carrier, which is scheduled to restart passenger operations on Monday, said its recapitalization effort is worth $1.5 billion. Private investors and existing creditors are contributing £1.2 billion ($1.35 billion) in financing, while the airline is implementing £280 million ($351...
https://s29755.pcdn.co/news/virgin-atlantic-secures-emergency-investment-to-fund-operation
The European Union on Monday approved a 3.4 billion-euro ($3.8 billion) financial support package, backed by the Netherlands government, to help national champion KLM get through the coronavirus crisis.
The Dutch aid is on top of 7 billion euros ($7.9 billion) in funding granted earlier this year by France for sister carrier Air France.
Under the Dutch rescue program, KLM will receive a 2.4 billion-euro revolving credit facility from 11 banks. Loans are 90% guaranteed by the government and mature...
https://s29755.pcdn.co/news/klm-gets-eu-blessing-for-dutch-emergency-aid
The airline industry is sitting in a financial hotseat as the economic slowdown caused by the coronavirus pandemic burns up cash, but for some carriers it feels like an inferno.
Israeli-flag carrier El Al on Thursday said it has ceased scheduled passenger operations through the end of July and sent most employees home without pay amid a liquidity crisis, while Aeromexico received court approval to use existing resources to pay employees and vendors, and honor ticket purchases and existing...
https://www.freightwaves.com/news/el-al-crisis-worsens-aeromexico-opts-for-bankruptcy
Deutsche Lufthansa AG [OTC: DLAKY] has secured the liquidity it needed to ensure its near-term survival after shareholders overwhelmingly voted in favor of a stabilization package from the German government.
Under terms of the deal finalized Thursday, Lufthansa is eligible for loans up to $10.1 billion and the German government will purchase shares for 20% of the company. The government will also be a passive investor with a contribution of $6.4 billion. The German Economic Stabilization Fund...
https://s29755.pcdn.co/news/lufthansa-secures-german-rescue-package
Airlines need more government help dealing with the fallout from the coronavirus if they are to get through the winter doldrums, when revenues tend to wane, the International Air Transport Association (IATA) said Tuesday.
The key to survival during the winter is schedule flexibility at large airports and for that airlines say they need relief from use-it-or-lose- it slot rules – authorizations to takeoff and land at busy airports on a particular day during a specified time period.
Governments...
https://www.freightwaves.com/news/airlines-seek-government-help-to-survive-winter-doldrums