United Airlines

Breaking: American Airlines to eliminate 30% of mid-level staff

Red, white and blue tails of American Airlines planes at terminal gates.

American Airlines said it is making plans to reduce management and support staff by 30%, a precursor to more extensive frontline cuts expected in the coming weeks as the airline tries to stop using up cash for overhead and remain solvent beyond 2020.

The moves are part of an effort to remake itself into a smaller airline for the foreseeable future with the realization that leisure and business travel will be stunted for several years. Towards that end, American plans to fly about 100 fewer...

https://s29755.pcdn.co/news/breaking-american-airlines-to-eliminate-30-of-mid-level-staff

Breaking: New United CEO revamps C-suite to deal with COVID

White planes with blue tails on the tarmac.

Scott Kirby, who took over as CEO of United Airlines (NASDAQ: UAL) a week ago, wasted no time reshuffling the leadership team as the company tries to navigate the coronavirus crisis and a diminished travel market for the foreseeable future.

Late Wednesday he promoted Jon Roitman to chief operations officer, effective June 1. Greg Hart, the current COO who had indicated a desire to retire within 18 months or less, was tasked with developing medium- and long-term strategies for improved safety,...

https://s29755.pcdn.co/news/breaking:-new-united-ceo-revamps-c-suite-to-deal-with-covid

Air France-KLM bids adieu to A380 jumbo jet

A white super-jumbo jet on approach to land in blue skies.

Air France-KLM Group (FP: AF) said it has permanently eliminated double-deck Airbus A380 aircraft from its fleet, joining other airlines that also are rationalizing fleets to contain costs amid a dramatic downturn in business caused by the coronavirus pandemic.

The current economic hardship accelerated Air France-KLM’s previous plan to retire its nine A380s by the end of 2022 — part of a five-year restructuring plan announced last November to improve profitability. The fleet renewal effort at...

https://www.freightwaves.com/news/air-france-klm-bids-adieu-to-a380-jumbo-jet

Breaking: FAA approves cargo to ride in passenger seats

Cargo strapped in passenger seats.

U.S. airlines will soon fly temporary freighters with cargo, instead of passengers, in the seats.

Since domestic passenger carriers began operating some aircraft in cargo-only mode two months ago, they have been largely restricted to loading freight in the lower hold where baggage and shipments normally ride. On Thursday, the Federal Aviation Administration issued an exemption allowing airlines to carry cargo on seats.

Airlines had requested a two year break from existing regulations, but the FAA...

https://www.freightwaves.com/news/breaking-faa-approves-cargo-to-ride-in-passenger-seats

U.S. airlines add June capacity as passenger bookings inch back

Bright blue and orange Southwest jet comes in for landing wheels down.

Airlines are beginning to show small signs that they’ve escaped the market’s rock bottom and are attracting more customers as states begin easing coronavirus stay-home orders. 

The flickers of returning passenger demand are leading them to add back some capacity into their networks. The additional flights also will help shippers that need air transport for their goods.

United Airlines on Tuesday said it has seen a reduction in customer cancellation rates and a moderate improvement in demand in...

https://www.freightwaves.com/news/us-airlines-add-june-capacity-as-passenger-bookings-inch-back

Avianca receives preliminary okay for Chapter 11 bankruptcy

An Avianca white plane is being loaded with cargo.

A U.S. federal court on Monday agreed on an interim basis to Avianca Holdings SA’s initial motions to voluntarily reorganize under court-supervised bankruptcy protection.

Latin America’s second-largest airline sought bankruptcy over the weekend in an effort to continue operating as a smaller company, saying the shutdown of its passenger network because of the coronavirus pandemic is putting extreme pressure on its cash reserves.

Avianca also operates a fleet of freighters and is a significant...

https://s29755.pcdn.co/news/avianca-receives-preliminary-okay-for-chapter-11-bankruptcy

North American passenger airlines expand cargo flights in May

A big white jet gets loaded with pallets of cargo.

Having gotten a taste of flying on-demand and scheduled cargo-only flights, U.S. and Canadian passenger airlines are doubling down on their new business model in May. 

Cargo is one of the few sources of revenue for airlines these days and after idling most of their fleets because of coronavirus travel restrictions and safety fears, shippers are itching to find available air transport to move their goods.

Delta Air Lines (NYSE: DAL) on Wednesday is turning its frequent Shanghai-to-Los Angeles and...

https://s29755.pcdn.co/news/north-american-passenger-airlines-expand-cargo-flights-in-may

United Airlines names Kirby’s successor as president

United Airlines (NASDAQ: UAL) has named Brett Hart as president, effective May 20.

Hart, who joined United in 2010, is the airline’s executive vice president and chief administration officer.

The promotion is part of the airline’s leadership succession plan announced in early December in which current CEO Oscar Munoz will become executive chairman and Scott Kirby, the current president, will move up to lead the company.

Munoz complemented Hart for his “strong track record” at United over the past...

https://s29755.pcdn.co/news/united-airlines-names-kirbys-successor-as-president

United Deep Dive: Earnings call underscores airlines’ disciplined survival plan

White jet on appoach for landing.

No one knows when the economic depression will end. It’s no surprise that many companies lost money in the first quarter and will have worse results during the second quarter. Instead, investors are trying to figure out who is able to recover fastest and win market share in a post-pandemic reopening.

That’s why no one cares that United Airlines (NASDAQ: UAL) lost $1.7 billion in the first three months of the year. For the airline industry the metrics that count now are liquidity and cash burn....

https://s29755.pcdn.co/news/united-deep-dive-earnings-call-underscores-airlines-disciplined-survival-plan

United Airlines plans for worst, hopes for best

White regional jets parked at airport.

United Airlines’ President Scott Kirby on Friday laid out a stark future for the airline industry, saying  the carrier is preparing for a scenario in which there is no passenger revenue into next year and it will have to dismiss thousands of workers if travel doesn’t rebound from the coronavirus crisis.

In a matter of weeks, the pandemic has vaporized an industry that was seeing record growth, turning airports into ghost towns and airplanes nearly empty. United appears to be the most pessimistic...

https://www.freightwaves.com/news/united-airlines-plans-for-worst-hopes-for-best

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