Despite tumbling demand amid the coronavirus crisis, United Airlines Holdings UAL has reinstated some of its international flights to help worried customers return home. To this end, the airline’s international schedule will now be reduced by approximately 90% in April compared with its previous announcement to slash capacity by 95% for the month.
Flights connecting Newark/New York with Frankfurt, London and Tel Aviv will remain operational through May. Additionally, Houston–Sao Paulo services and flights connecting San Francisco with Tokyo-Narita and Sydney will remain operational through the month.
From Newark/New York, outbound flights to Amsterdam, Munich, Brussels and Sao Paulo will continue through Mar 27. Outbound service between Washington-Dulles and London as well as that between San Francisco and Frankfurt will also be operational through the same date. Moreover, through Mar 29, the airline will continue to operate the San Francisco–Seoul outbound flights.
The Chicago, IL based airline is seeking permission from the U.S. State Department and the local governments to operate services to the travel-restricted places so that they can bring back passengers stranded by the government-set travel limitations.
As United Airlinestakes a severe hit from plummeting air travel demand, its shares have plunged more than 67% since the beginning of February compared with the industry’s 57.7% depreciation.
With shrinking air travel demand, other U.S. carriers like American Airlines AAL and Delta Air Lines DAL have also trimmed capacity dramatically. While American Airlines reduced international flights by 75%, Delta decided to cut systemwide capacity to the tune of 70% until there is recovery in air-travel demand. Notably, over the next two to three months, Delta’s international flights will be reduced to more than 80%. Meanwhile, LATAM Airlines LTM plans to cut back capacity by 70% due to this global health peril.
United Airlines carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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