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Latest HL 364 published Oct 21, 2024. Not all sections of Blog are on first page. Click OLDER POSTS to view additional newsletter sections. For PDF version and all archived list CLICK HERE. Look for next issue soon!

Airlines news

Thursday, March 19, 2020

Misc - HL 315 (3)

As we go to print, things have really changed in the travel and airline world.  Look below to two articles in the last HL that the big D had soo much cash they were funding just about everything.  NOW, they along with other airlines, are in DC with hat in hand for a handout.  The while the Fed is passing out Billions like candy, maybe they could cough up $1 Bill for the old retired pilots who got hosed.  I’m holding my breath, waiting for that.  Look for some airlines to not let ‘any crisis go to waste’ and use this one to “re-order” other pension liabilities that they in no way are funded for nor have any intention of fulfilling in the future.

Also from Capt Moser:
Airlines and Boeing want a bailout — but look how much they’ve spent on stock buybacks

robert moser   rmoser47@gmail.com

1st Two Clips below from a few weeks ago followed by the latest article about Delta:

Delta workers to receive profit-sharing payouts worth 2 months’ pay

Jan. 21, 2020 at 3:57 p.m. EST
Jena McGregor
Delta Air Lines’ banner year — propelled by lower fuel prices, higher travel demand and no sidelined Boeing 737 Max planes in its fleet — led the carrier to beat earnings estimates and notch its 10th consecutive profitable year………………………………….

…………………………………………………..

Delta to invest $1 billion to curb global air travel's climate impact



CHICAGO (Reuters) - Delta Air Lines Inc said on Friday it will invest $1 billion over the next decade in initiatives that would limit the impact of global air travel on the environment, the first airline to make a commitment of that scale.
The aviation industry accounts for roughly 2% of global carbon dioxide emissions and has set out a plan to achieve carbon-neutral growth from 2020, even as air travel is forecast to accelerate…………………………………..
Delta cuts a record number of flights and seeks coronavirus aid from the U.S.

Mary Schlangenstein and Ryan Beene
March 13, 2020 1:17 PM

Delta Air Lines Inc. is cutting flights further, slashing spending and seeking government aid to contend with the coronavirus outbreak — and Chief Executive Ed Bastian warned employees that the situation is likely to get worse.
The carrier is “optimistic” about U.S. support after discussions with the White House and Congress, Bastian said Friday in an internal memo. Delta will park as many as 300 planes and cut its seating capacity by 40% in the next few months as demand evaporates. That’s the biggest reduction in company history, including after the 9/11 terrorist attacks, he said.
“The speed of the demand falloff is unlike anything we’ve seen,” said the CEO, who will give up his salary for the next six months. “We are moving quickly to preserve cash and protect our company. And with revenues dropping, we must be focused on taking costs out of our business.”
Delta’s rush to reduce expenses underscores the swift collapse in travel demand as the new coronavirus spreads worldwide. Cancellations are rising so fast that more customers are scrapping reservations than making new ones for travel over the next month, Bastian said.
The precarious situation facing U.S. carriers is focusing attention on Washington, where Treasury Secretary Steven Mnuchin said the airlines were likely to need assistance because of their “short-term liquidity issue.” American Airlines Group Inc. said it was involved in discussions about government support as well.
Sen. Ted Cruz, the Texas Republican who chairs the Senate Commerce Committee’s aviation panel, is working with airlines, Trump administration officials and other lawmakers on economic relief measures, according to his office.
Airlines are “on the front lines of combating this public health crisis and are facing very real economic challenges as a result,” Cruz spokeswoman Jessica Skaggs said in a statement.
“I’m optimistic we will receive their support,” Bastian said. “That said, the form and value is unpredictable, and we can’t put our company’s future at risk waiting on aid from our government.”
As part of the cost cuts, Delta will defer new aircraft deliveries and pare investment by at least $2 billion this year. The Atlanta-based company is also adopting a hiring freeze and offering employees voluntary unpaid leave.
Delta had said it would cut domestic capacity as much as 15% and international flights by up to 25%. United Airlines Holdings Inc. chopped its April domestic schedule 10% and reduced international flying 20%, while American Airlines Group Inc. said it would trim U.S. service 7.5% in April and decrease foreign flights by 10% in the peak summer season.
The airline industry took an additional blow this week when President Trump ordered temporary restrictions on travel to the U.S. from the European Union. Bastian warned that the 30-day ban on most flights “could be extended,” furthering the drop in traffic.

“Demand for travel is declining at an accelerated pace daily, driving an unprecedented revenue impact,” Bastian said. “We’ll be making more critical decisions on our response in days to come. The situation is fluid and likely to be getting worse.”

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