What You Need to Know About U.S. Airlines Now in a World Turned Upside-Down
Photo Credit: Empty plane cabins like the one shown here will be all too common for airlines as the coronavirus outbreak ramps up. Adobe / Mirko
Skift Take
U.S. airlines were in a position of strength. And then the coronavirus crisis struck. Although no carrier has announced layoffs or has requested a government bailout, the days, weeks, and months ahead look rough.
It was supposed to be a routine JPMorgan investor conference. U.S. airline executives would assemble in New York City, describing a world of strong demand, constrained supply, falling oil prices, and a healthy U.S. economy. Then along came coronavirus.
The JPMorgan event proceeded as planned on Tuesday, though held virtually amid corporate bans on employee travel. What executives actually described was a world completely upended by the virus scare: demand falling faster than even after 9/11, oil prices falling far faster than anyone could imagine, and a U.S. economy that now appears headed for recession.
Delta was first to present. CEO Ed Bastian said net bookings (new bookings minus cancellations) had declined 25 percent to 30 percent, a drop that surely worsened a day later when President Trump announced a 30-day travel ban to Europe. As of March 10, the carrier said unit revenues for all of the first quarter would likely be down in the mid-to-high single digits. When the virus
