Business & Investment

US airlines see “foot” recovery, share rises to pre-pandemic levels Reuters

© Reuters. File Photo: American Airlines passenger planes are congested at Tulsa International Airport in Tulsa on a parked runway due to reduced flights to delay the spread of coronavirus disease (COVID-19).


By Tracy Rucinski and Sanjana Shivdas

(Reuters)-US airline executives said Monday as a pandemic slowdown facilitated spring and summer bookings, pushing market share to the highest level since the coronavirus crisis struck the sector a year ago. He pointed out specific signs of a recovery in domestic leisure travel.

Doug Parker, CEO of American Airlines (NASDAQ :), one of the CEOs at the JP Morgan conference, said:

Low Cost Carrier CEO Ted Christie Spirit Airlines (NYSE :), said the recovery seemed to “have legs”.

Executives quoted data showing that US COVID-19 vaccination is accelerating, outpacing the declining number of positive cases.

As of Sunday, 21% of the US population had been vaccinated at least once.

As a result, people are booking vacations and visits to friends and relatives, and while business and international travel are still depressed, they are helping to slow the pace of the expected revenue decline in the first quarter. ..

The airline’s share began to decline dramatically on February 21, 2020 as the pandemic expanded, reached a low on May 14, and then gradually rose to its current high.

United Airlines is the first major airline to reach a milestone in the industry, said CEO Scott Kirby (NYSE :), who plans to suspend cashburn in March. United said in January that an average daily core cash burn of $ 19 million in the fourth quarter is likely to continue in early 2021.

According to Kirby, the positive trend for core cashburn is expected to continue beyond March, assuming the current booking trajectory is maintained. Core Cash Burn excludes debt and retirement payments.

United’s share price surged 9% and the Dow Jones Industrial Average () rose more than 4%.

Delta Air Lines (NYSE :) is “carefully optimistic” that it can stop Cashburn this spring, CEO Ed Bastian said.

Delta plans to spend cash on aircraft purchases in the second quarter, with a 60% to 65% decline in first-quarter revenue from the same quarter of 2019, the lower end of its pre-start forecast. I expect it to be. Pandemic.

Southwest Airlines (NYSE :) estimated that there was less cash burn in the first quarter and that the decline in operating revenue in March was less than previously predicted.

JetBlue Airways (NASDAQ :) also forecasts a slowdown in revenue decline in the first quarter, down 61% to 64% compared to the same period in 2019. 70%.

American Airlines, the most leveraged U.S. airline, is not expecting any more funding after the $ 10 billion debt deal last week, with more than $ 17 billion in liquidity at the end of March. He said he was expecting it.

More than 1.3 million passengers were screened at US airports on Friday and Sunday, according to Transportation Security Administration data. This is the highest number since the pandemic air travel in 2020.

“I think we’re nearing the end of the virtual world,” said Kirby of United.

US airlines see “foot” recovery, share rises to pre-pandemic levels Reuters US airlines see “foot” recovery, share rises to pre-pandemic levels Reuters

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