Tag: coronavirus

United Airlines US Bookings Drop 70% Due To Coronavirus

United Airlines has reported a shocking 70% drop in domestic reservation demand during the past few days and has said it will make additional cuts in the coming months to adjust to demand.

The net bookings for United Airlines (new reservations minus cancellations), have collapsed in both Europe and in Asia. Domestic net bookings are down 70% and gross bookings are down 25% at the time of this publishing.

The CEO of United Airline’s view of the Coronavirus situation is one of the ugliest yet. The airline and their competitors are rushing to cut costs and preserve liquidity until things improve.

A number of CEO’s for airlines in the United States are confident that they will weather this storm. Many airlines have multiple revenue streams like online shopping, co-branded credit cards, hotels, and more.

United Airlines has stated that they will cut flights in May by 20% and each month after that will be the same or larger until demand returns.

Airlines outside of the United States may not survive the Coronavirus crisis due to their weaker balance sheets or lack of cash reserves.

Cathay Pacific Asks 27,000 Workers To Take Unpaid Leave

Cathay Pacific has asked it’s 27,000 employees to take 3 weeks of unpaid leave from work to help the airline stay afloat during this rough financial time with the Coronavirus.

In a video message to employees on Wednesday, CEO Augustus Tang told employees that the current situation is as grave as the 2009 financial crisis.

Cathay Pacific has announced a 90% reduction in capacity on flights to China, and a 30% reduction in other flights across the world.

Employees have been asked to take “special leave” between March 1st and June 30th. “Preserving cash is the key to protecting our business,” the airline said.