By Tyler Durden
Despite the bullish news surrounding�Pfizer’s
COVID-19 vaccine earlier this week, lifting airline stocks to
the stratosphere on hopes of a recovery in the severely beaten down
travel and tourism sector, an industry group warned Thursday about
the dire situation still facing many airlines.
U.S. Global Jets ETF Jumped On Pfizer COVID-19 Vaccine
News
Airline For America’s CEO Nick Calio, speaking at a conference
Thursday morning, said air travel demand is “softening†late in
the year. He said some of the reasons for the slump could be due to
the resurgence of
the virus pandemic.
Airline For America’s CEO Nick Calio, speaking at a conference
Thursday morning, said air travel demand is “softening†late in
the year. He said some of the reasons for the slump could be due to
the resurgence of
the virus pandemic.
*US AIRLINE DEMAND IS
SOFTENING, AIRLINE LOBBY GROUP CEO SAYS— zerohedge (@zerohedge)
November 12, 2020
The daily number of passengers screened at TSA checkpoints in
the U.S. from March 2019 to November 2020 remains halved from early
March levels. As the second wave of the virus pandemic ravages many
parts of the U.S. – what appears to be happening in the chart
below are lower volumes of daily passengers screened at TSA
checkpoints that peaked
on Oct. 18.
Calio said airlines’ Thanksgiving-week capacity could be down
as much as 39% from a year ago, compared with a 47% drop in the
first half of November. It was also noted that corporate air travel
in the US remains 86% below 2019 levels.
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He said airlines could ax upwards of 90,000 workers this year as
many carriers must reduce costs to survive the downturn. A muted
recovery so far and waning revenues have left airlines in a
precarious position – where they’re quickly running out of
cash. At the moment, airlines are burning through $180 million per
day, with only enough cash through 1Q21.
*US AIRLINES EXPECT DAILY CASH
BURN TO CONTINUE THROUGH 1Q 2021*US AIRLINES: SITUATION STILL DIRE, DAILY CASH BURN AT $180
ML— zerohedge (@zerohedge)
November 12, 2020
In October, the International Air Transport Association (IATA)
warned that global airlines are
on track to lose nearly $130 billion this year – significantly
more than June’s estimates of $84 billion.
IATA has already said the virus-induced downturn has resulted in
30 or 40 airlines having failed or restructured in bankruptcy.
IATA analysis shows airlines have about three-quarters of cash
on hand at the current burn rate. With airline passenger volumes
still down 65% in October from last year, airline ticket prices
have crashed,
increasing worries that airlines’ revenue streams won’t be
enough to service existing debts.
To survive, some airlines, such as Emirates,
the largest commercial airline in the UAE, have converted some of
its passenger jets into “mini-freighters†to haul medical
supplies worldwide.
Source:
Zero Hedge
Image: Pixabay
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Another 90,000 Airline Jobs Set To Disappear By Year-End As
National Lockdown Looms
