Alaska Airlines Owes Nearly $600 Million in Credits to Travelers That Could Hurt a Recovery
Photo Credit: Alaska and Horizon Air jets and turboprops on the ramp. Alaska Airlines
Skift Take
Several airlines have extended the length of time passengers have to use travel credits. Are they trying to be nice? Or are they trying to make sure passengers use credits over time, and not all at once?
To keep cash, most U.S. airlines have pushed travel credits, not refunds, for travelers affected by Covid-19. It's better than returning money to customers, but for airlines, those credits create their own liabilities.
Alaska Airlines told investors last week it has between $500 million and $600 million in outstanding travel credits, about 10 times more than usual. Perhaps more concerning, the airline does not know how consumers will use them.
Airlines executives typically do not divulge such details in public, so Alaska's revelation offers insight into yet another hurdle carriers face during this pandemic. Skift was unable to determine how $500 to $600 million in credits compares with what other airlines are carrying, though other airlines have said
