30.10 +0.19 (0.64%)
After hours: 7:59PM EDT
|Bid||29.91 x 3100|
|Ask||29.90 x 1100|
|Day's range||29.32 - 30.92|
|52-week range||17.80 - 96.03|
|Beta (5Y monthly)||1.49|
|PE ratio (TTM)||7.53|
|Earnings date||14 Jul 2020 - 20 Jul 2020|
|Forward dividend & yield||N/A (N/A)|
|Ex-dividend date||07 Jan 2008|
|1y target est||36.29|
(Bloomberg Opinion) -- Covid-19 became a pandemic because airplane passengers carried the new coronavirus with them around the world. As that became clear, airlines grounded nearly all of their fleets, governments issued travel restrictions and mandatory quarantines, and tourist attractions and conferences closed down. With no reason to fly, a quick recovery for air travel seemed unlikely. Warren Buffett dumped his airline stocks, claiming that the “world has changed.”Passengers also wouldn’t feel safe packed inside a metal tube for hours, would they?Happily for the industry, if not for the climate, the seemingly insurmountable barriers to air travel have begun to look less daunting. “We believe the worst is behind us, and we’re on the uptick,” American Airlines Group Inc.’s boss, Doug Parker, said after a surge in travel over the U.S. Memorial Day holiday weekend.Investors have taken notice. The Bloomberg Americas Airlines stocks index has rebounded by almost one-third from the mid-May low, and European carriers have made similar gains. Shares in German tour operator Tui AG have risen too.Such optimism feels jarring when airlines, American Airlines included, are poised to cut thousands of jobs. Most are still burning huge amounts of cash. Deutsche Lufthansa AG needs a 9 billion-euro ($10 billion) bailout, and Latam Airlines Group SA joined Latin American peer Avianca Holdings SA in filing for bankruptcy last week.But Parker is probably right to expect a continued recovery, at least on domestic and short-haul routes. This won’t be enough to put debt-laden airlines on a secure footing, and a full demand recovery probably won’t happen for a couple more years. But, right now, a desperate industry will take any good news it can get. The rigorous hygiene measures airlines have announced should go a long way toward restoring passenger confidence. European budget carrier Ryanair Holdings Plc expects to operate at 40% of normal capacity from July, and the way bookings are shaping up suggests those planes will probably be at least half full. EasyJet Plc sees “encouraging” trends and notes that winter bookings are higher than usual for this time of year, although part of that may be because people have refund vouchers to use and are rebooking cancelled trips. Ryanair’s extensive summer flight schedule had seemed premature a couple of weeks ago, but the travel restrictions that kept Europeans from moving around the continent are being relaxed. Starting in July, Spain is set to drop its requirement for international arrivals to quarantine for 14 days. Britain imposed a similar rule but is under immense pressure to abandon it. Travel between Europe and the U.S. will take longer to open up, but even on this there are encouraging signs of political will to get people flying again. A month ago, United Airlines Holdings Inc.’s chief executive officer, Scott Kirby, lamented that there wouldn’t be a recovery in flying until attractions like Disney World and the Paris museums were open again.Well, they will be soon. It’s already possible to visit the Acropolis in Athens and St Peter’s Basilica in Rome. Paris’s parks and museums are set to reopen from June. The French capital is usually swamped with tourists at this time of year, so there’s an incentive for travelers to get there first. Walt Disney World expects to reopen its Florida park from July, albeit with compulsory face masks and a ban on hugging your favorite Disney character.I’ve written before about how things like wearing masks and having to ask permission to use the toilet will make flying even less enjoyable. But these measures may make passengers feel safer. For example, while the gowns and other personal protective equipment issued to Emirates’ cabin crew are a little intimidating, they’re likely to put some nervous flyers at ease.As with SARS almost two decades ago, there are understandable concerns about catching coronavirus within the aircraft cabin, most likely from someone seated close by. The evidence isn’t comprehensive or conclusive, but so far there are surprisingly few documented cases of this happening with Covid-19. Airline industry body IATA says it knows of only one case where a person transmitted the virus to more than one person on board. Not surprisingly, plane manufacturers Airbus SE and Boeing Co. are studying the subject intensively. There are other plausible reasons why flying might be safer than you’d think: The air is filtered and frequently replenished from outside, seats act as somewhat of a barrier and passengers don’t move around the cabin much. Singing, yelling and talking loudly — contributors to so-called super-spreader infection events — are a big faux pas when you fly. Many passengers would still prefer the middle seat to be empty, but as I’ve written before, unless ticket prices rise, that would severely hamper airlines’ ability to break even.Of course, the longer someone’s on board, the greater the chance they’re exposed to infection. Hence people may feel comfortable flying domestic and short-haul before they’re willing to fly halfway around the globe.Companies will probably take longer to get comfortable with the risk (and potential liability) of their employees flying for business. About half the corporate clients American Airlines surveyed still have a travel ban, although that’s down from two-thirds at the peak of the crisis. Millions of potential passengers have also lost their jobs and won’t feel able to splash out on holidays.And then there are the psychological scars from the prolonged lockdown. Being outside now feels a lot safer than being in any kind of confined space. A staycation in a local Airbnb might feel preferable to getting on a plane.For those willing to take the risk, and who can find adequate travel insurance, a rare opportunity awaits. Want to see Venice without the crowds? Now’s your chance.This column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Chris Bryant is a Bloomberg Opinion columnist covering industrial companies. He previously worked for the Financial Times.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
United Airlines (UAL) closed the most recent trading day at $29.91, moving +1.53% from the previous trading session.
Delta (DAL) carries out a reshuffling process to align its staff size to future flying plans. To prevent furloughs in this regard, the carrier is working with the pilots' union.
United Airlines'(UAL) job cuts are part of its cost-cutting measures. The carrier had earlier warned of a 30% reduction in its administrative staff.
(Bloomberg) -- New York is targeting “hotspots” as New York City prepares to reopen in less than two weeks. U.S. cases increased 1.7%, faster than the one-week daily average.Attendance at a June U.S.-hosted meeting of world leaders could shrink because of the outbreak. Siemens Healthineers received U.S. emergency authorization for a coronavirus antibody test.European Union leaders urged the U.S. to reverse a decision to quit the World Health Organization. Italian cases trended lower as the government starts to allow travel, despite objections over letting people leave the hard-hit region near Milan.Key Developments:Virus Tracker: Cases top 6 million; deaths over 367,000Indonesia to open malls, entertainment sites as cases riseTexas shows the world how to reopen cautiously, for nowChinese vaccine expected to begin mass output soonRace to the freezer: Europe’s food glut has nowhere to goPizza chains have windfall on surge in takeout, deliveriesBaseball on ESPN: Korea’s major league plays through outbreakSubscribe to a daily update on the virus from Bloomberg’s Prognosis team here. Click VRUS on the terminal for news and data on the coronavirus. For a look back at this week’s top stories from QuickTake, click here.U.K., France Mull G-7 as Germany Skips (5 p.m. NY)The Covid-19 outbreak may deter German Chancellor Angela Merkel from attending a Group of Seven leaders meeting in the U.S., but other leaders are still in talks with the host, President Donald Trump.Trump spoke with French President Emmanuel Macron on Saturday with “progress on convening the G-7” among the topics, the White House said. On Friday, U.K. Prime Minister Boris Johnson and Trump “discussed the importance of leaders meeting in the U.S. in person, if possible,” according to Johnson’s office. A Merkel spokesman on Saturday said “she’s unable to confirm her personal participation” given the current state of events.The meeting was planned for Trump’s Doral resort in Florida, was moved to Camp David then became a video conference because of the pandemic. Trump is pushing the G-7 leaders to travel to the U.S. for an in-person meeting.U.S. Cases Rise 1.7%, Above Week’s Average (4 p.m. NY)U.S. cases increased 1.7% from the same time Friday, to 1.76 million, according to data collected by Johns Hopkins University and Bloomberg News. The national increase exceeded the average daily increase of 1.3% for the past week and was the biggest percentage rise since May 22. Deaths climbed 1.2% to 103,389.New York reported 1,376 new cases, for a total of 369,660, with 67 deaths -- the same as Friday and the fifth day of fatalities under 75. Deaths totaled 23,848.New Jersey had 910 new cases, pushing the total to 159,608, with 113 new deaths for a total of 11,634, Governor Phil Murphy reported.California reported 2,992 new cases, for a total of 106,878, and added 88 deaths, with the fatality count at 4,156.Pennsylvania reported 680 new cases, for a total of 71,415, and 73 new deaths, to total 5,537, the state health department said.Florida’s cases rose 1.7% to 55,424 and deaths rose to 2,447, the health department said.Greece Allows More Flights from Mid-June (3:30 p.m. NY)Greece will allow visitors from more nations, including the U.S. and U.K., to arrive at Athens and Thessaloniki airports starting June 15, the Foreign Ministry said. After July 1, flights can land at all Greek airports.The government will use the European Union Aviation Safety Agency’s list of airports to determine testing for arriving passengers. If travel originates at an airport not on the affected-area list, then visitors are subject to random tests, the Foreign Ministry said. If the journey begins at an airport on the EASA list, then visitors who test negative will self-quarantine for seven days and if positive will be under supervised quarantine for 14 days.Greece will reopen borders with Albania, Bulgaria and North Macedonia on June 15, the Foreign Ministry said with visitors subject to random tests. Arrivals by sea will begin July 1.French Cases Inch Higher (2:10 p.m. NY)France reported 57 new deaths, raising the total to 28,771, based on hospital data, with reporting of nursing-home fatalities delayed to Tuesday. New cases climbed by 1,828, or 0.8%, to 225,898.FDA Authorizes Siemens Antibody Test (2:10 p.m. NY)Siemens Healthineers AG received U.S. Food and Drug Administration emergency use authorization for a coronavirus antibody test, used to identify recent or prior infection in humans. The company had expected the test to be available by late May and aims to produce more than 50 million tests a month starting in June.N.Y. Targets NYC ‘Hotspots’ (2 p.m. NY)Governor Andrew Cuomo said the state plans to get New York City reopened by focusing on “hotspots” -- neighborhoods where positive cases can be nearly 50% and are largely in minority communities. The city average rate is about 20%.“We have work to do but we’ll still get it done by June 8,” he said.Cuomo also signed a law to compensate the families of hundreds of essential workers who have died in the outbreak.Italy Cases on Declining Trend (12:01 pm NY)Italy reported 416 new cases, up from 516 a day earlier, confirming a declining trend as the total reached 232,664. Total deaths rose to 33,340. The government confirmed plans to allow travel between regions starting June 3 even as some regional governors opposed letting people from the hard-hit Lombardy region move freely.N.Y. Daily Deaths Unchanged (11:45 a.m. NY)New York reported 67 new deaths, Governor Andrew Cuomo said at a Saturday press conference. The figure is the same as reported on Friday and the fifth straight day below 75 fatalities. The state reported 1,376 new cases, for a total of 369,660.U.K. Permits Live Sports Events (11:30 a.m. NY)The U.K. will allow live sports events, without spectators, and further relax restrictions on physical exercise starting Monday as the country eases lockdown measures.Horse racing will be allowed behind closed doors, with other sports like soccer, rugby, cricket, golf and snooker to follow, but without fans, Culture Secretary Oliver Dowden said at a press conference. “British sports recovery has begun,” Dowden said.England’s Premier League plans to resume matches on June 17, after consulting with the clubs, players and managers, Chief Executive Richard Masters said after the government announcement.Spain Deaths Rise (11:25 a.m. NY)The Spanish health ministry said total coronavirus cases increased by 271 to 239,228 in the past 24 hours. Total fatalities rose to 27,125 with 43 new deaths reported in the past seven days.Somalia Votes in 2021, Despite Outbreak (10:30 a.m. NY)Somalia will push ahead with elections in early 2021, Prime Minister Hassan Ali Kheyre said after a cabinet meeting, removing doubt that the spread of Covid-19 will delay the vote.The Horn-of-Africa nation is seeking debt relief as the pandemic adds to its woes, from an insurgency to locusts. It has almost 2,000 cases and a health system ill-equipped to handle the outbreak.South Africa Allows Domestic Flights (10:20 a.m. NY)South Africa will permit air travel from four main airports starting Monday as the nation eases lockdown measures. Limited domestic flights will be allowed for business, and passengers must give a reason, Transport Minister Fikile Mbalula said in a televised briefing on Saturday.India to Ease Lockdown in Stages (8:52 a.m. NY)India announced a phased lifting of the nationwide lockdown by allowing malls, restaurants and places of worship to open from June 8, the interior ministry said in a statement.The country, which had enforced sweeping and strict stay-at-home orders from March 25, will limit the stringent rules to areas that have a large number of active cases. Authorities will decide to open schools and colleges in July, while international air travel will resume in the final phase. The exit plan comes even as India has been unable to flatten its curve despite the restrictions which have left its already troubled economy in deep disrepair.EU Urges U.S. to Reconsider WHO Decision (8:24 a.m. NY)The European Union called on the U.S. to reconsider its decision to terminate its relationship with the World Health Organization, which President Donald Trump has accused of being too deferential to China.“Global cooperation and solidarity through multilateral efforts are the only effective and viable avenues to win this battle the world is facing,” according to a joint statement Saturday from European Commission President Ursula von der Leyen and the bloc’s chief foreign envoy, Josep Borrell. “We urge the U.S. to reconsider its announced decision.”Portugal’s Virus Cases Slow (8:04 a.m. NY)Portugal reported 257 new coronavirus cases on Saturday, taking the total to 32,203, after recording more than 300 infections in each of the two previous days, the government said. The increase in new cases has been mostly in the greater Lisbon area and led the government on Friday to delay the planned reopening of malls in that region. The number of cases in intensive care units fell to 63 on Saturday, remaining at the lowest level since March.Macau’s Economy Shrinks by Almost Half (6:46 a.m. NY)Macau’s economy posted a deeper contraction in the first quarter as lockdown measures introduced to contain the virus outbreak hit revenue from gambling, hotels, and tourism.Gross domestic product in Macau plummeted 48.7% in the first three months of 2020, according to the city’s statistics department. That is the fifth straight quarterly decline.Belgium’s Socialists Propose $41.7 Billion Stimulus (6:14 a.m. NY)Paul Magnette, the head of Belgium’s Socialist party, proposed a 37.6 billion-euro ($41.7 billion) stimulus package to combat the economic toll of the global pandemic, according to an interview with Le Soir. The aid would target catering, cultural and health-care industries, he said.Iran Reports Fewer New Cases (6:12 a.m. NY)Iran’s infection tally rose to 148,950 as the daily number of new cases dropped to 2,282 from 2,819 on Friday, the highest daily number of cases in eight weeks. The virus death toll reached 7,734 with 57 more deaths overnight.S&P Sees Abu Dhabi, Bahrain Economies Shrinking (5:20 p.m. HK)Abu Dhabi’s economy will contract 7.5% this year, S&P Global Ratings said, citing lower oil production and the pandemic.Bahrain’s economy will shrink 5% this year because of low oil prices, although government stimulus measures should provide some support, S&P said. The ratings company expects Bahrain’s economy to rebound in 2021 as oil prices recover and regional activity increases.Indonesia Gears Up for Post-Holiday Return (5:02 p.m. HK)Indonesia’s capital Jakarta is anticipating one million vehicles will enter the city as people return from Eid al-Fitr holidays. Traffic, including motorcycles, is projected to peak from Saturday to Monday, according to a Cabinet Secretariat statement. While the figure is lower compared to the 2.8 million vehicles recorded last year, the flow of so many travelers is raising concern as the nation’s coronavirus cases grow.Indonesia now has the highest coronavirus death toll in Southeast Asia, with 1,573 people succumbing to the disease as of Saturday. New cases have more than doubled in May, with the total reaching 25,773.Uzbekistan Extends Lockdown (3:36 p.m. HK)The Uzbek government has decided to extend lockdown restrictions until June 15. Central Asia’s most populous nation has confirmed 3,513 cases of infection of the coronavirus, with 14 deaths and 2,728 recoveries.Singapore Reports 506 New Cases (3:30 p.m. HK)Singapore reported 506 new infections as of Saturday, according to a statement from its Health Ministry. A vast majority of the additional infections are of work permit-holders who live in foreign workers’ dormitories, according to the statement. The ministry is expected to provide additional details in the evening, it added.Chinese Vaccine Expected to Begin Mass Output This Year (3:25 p.m. HK)A front-running Covid-19 vaccine being developed in China is expected to be available as soon as the end of this year, according to a report published in the official Wechat account of the State-owned Assets Supervision and Administration Commission.The vaccine, jointly developed by the Beijing Institute of Biological Products and China National Biotec Group Co., has completed phase II testing and may be ready for the market at the end of this year or early next year, said the report.The production line for the vaccine will be fully disinfected and closed in preparation for output to start Saturday, and will have a manufacturing capacity of 100 million-120 million vaccines each year.Iran Lifts Restriction on Shopping Hours (2:26 p.m. HK)Iran has lifted a restriction on the operating hours of shopping malls in the latest step of reopening the economy. Meanwhile, all mosques in the country will be open to worshipers for daily prayers three times a day, President Hassan Rouhani said in a national coronavirus taskforce briefing broadcast on state TV.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
(Bloomberg) -- U.S. airlines have yet to tap $29 billion in federal pandemic relief loans as they wait to see whether the reopening of the economy revives demand and diminishes the need for money that comes with government strings attached.Although the four largest U.S. passenger airlines have applied for the Treasury Department program, only American Airlines Group Inc. has said it intends to tap the pool of funds. Southwest Airlines Co., United Airlines Holdings and Delta Air Lines Inc. say they plan to wait until fall before deciding whether to take the money -- after a summer travel season that could see more people return to the skies.The wait-and-see approach illustrates how airlines are preparing for an uncertain future amid early signs of a recovery after Americans all but stopped flying in April due to the coronavirus and travel restrictions. A second wave of infections could make the situation worse.It also highlights how only a small portion of hundreds of billions of dollars available to the Treasury Department has actually been doled out to help companies.“That pool of money is designed as backstop financing and for those who can’t raise money elsewhere,” said Helane Becker, an analyst at Cowen & Co. in New York.U.S. airlines have separately raised billions in capital through methods including secured loans, bond offerings and equity sales, and Becker said that the federal loans are a last resort. The government loans would impose restrictions such as a cap on executive compensation and require carriers to offer equity or other financial stakes to the government in exchange for the aid.“The hope is that by September, the worst of the pandemic is behind us and people will be booking for travel in the fall and the holidays, and airlines won’t need to take the money,” Becker said.A Treasury Department spokeswoman declined to comment on the number of loan applications received and when the money would be distributed. The department has separately disbursed $25 billion from its payroll support program. Airlines accepting the funds, which are a mix of grants and loans, are required to refrain from layoffs until after Sept. 30.Airlines have pointed to signs that travel demand is beginning to perk up in recent weeks, fueling hopes that the stress on beleaguered carriers could begin to wane. Passengers taking flights over Memorial Day weekend, an early test of consumer confidence and the unofficial start of the summer travel season, reached levels unseen since late March. Airlines say bookings are outpacing cancellations, and airplanes that have been almost empty are starting to fill up.Carriers are far from out of the woods, however. The aviation industry’s recovery from the coronavirus outbreak will be long and slow, with global passenger numbers likely to stay below pre-pandemic levels through 2023, according to S&P Global Ratings, which warned of more rating downgrades for airports over the next few months.Although 321,776 people passed through security at U.S. airports on Thursday in one of the busiest days since late March, that’s still an 87% decline from the equivalent day last year, according to the U.S. Transportation Security Administration. Airlines have openly discussed the likely need to shed thousands of workers after a prohibition on job cuts tied to the payroll support program expires.On Thursday, for example, American Airlines announced plans to shed 30% of its management and support staff to align its operations with dramatic declines in travel.“While I don’t want to get into specifics, we continue to have very productive conversations with Treasury Department and its advisers,” American Airlines President Robert Isom said at an industry conference May 19. “Treasury has been nothing but fantastic to work with through these unprecedented times, and we remain very confident that we will move forward with this loan in a prudent and efficient manner.”Delta, SouthwestThe Treasury Department launched the loan program April 8, and has made no further announcements since it closed on April 17. The agency is weighing whether it will disburse the money in one or several tranches as the outlook for the industry’s recovery becomes clear, a person familiar with the matter said. The program may also evolve as Treasury Secretary Steven Mnuchin hasn’t settled on the details, the person said.Delta has applied for the additional Treasury loan “to hold our place in line,” Chief Financial Officer Paul Jacobson said at the same Wolfe Research conference. “We have until September to make a decision about that as well as other financing sources should we need them.”“We’ve applied for it,” Southwest Chief Executive Officer Gary Kelly said of the potential $2.8 billion loan at the carrier’s annual shareholder meeting May 21. “We’ve not committed to take that money and we have until September 30 to make that decision.”The airline loan program is yet another piece of the pandemic rescue funds enacted on March 27 -- when Congress and the White House were so panicked that Covid-19 would ravage the U.S. economy that they quickly came together -- that may not be working as designed.Virus RescueMnuchin has only used $37.5 billion out of a $454 billion fund to backstop central bank emergency lending, though $195 billion has been committed for use. A Main Street lending facility that Congress asked the Federal Reserve to launch to support small and medium-sized companies is still not operational even as businesses lay off workers, shutter and eye bankruptcy. The Paycheck Protection Program for smaller companies has been riddled with glitches, and now needs to be fixed to extend the relief.Mnuchin also hasn’t disbursed a $17 billion pot of money reserved for companies deemed critical to national security. The largest expected recipient, Boeing Co., got help from private investors. For the hundreds of thousands of other defense contractors in the Pentagon’s supply chain, Treasury’s criteria is too strict to qualify.The loan packages for airlines and companies critical to national security, if untapped, can be used to backstop additional lending by the Fed.“With a lot of these programs it turns out they’re not for everybody, said Ian Katz, an analyst at Capital Alpha Partners in Washington. “There’s a general feeling of anguish and pain as people are unemployed, underemployed and businesses shut down -- surely the government can do more for them.”Not a BailoutFederal loans for the airline industry, which Mnuchin has repeatedly said are not a “bailout,” come with strings attached that analysts say may be less attractive than private markets. Any company tapping the loan pool must assure the government that credit is “not reasonably available” elsewhere.United Airlines, for example, is eligible for a loan of as much as $4.5 billion and the company expects to issue the department warrants to purchase 14.2 million shares of the company’s common stock, CFO Gerald Laderman said in a May 1 earnings call.Savanthi Syth, an analyst at Raymond James, said the department’s terms are not excessive but are onerous enough for airlines to turn first to the private sector.“The test for whether airlines will need this will be how much demand comes back this summer,” she said. “If we see demand getting back to 50% levels of last year, they might not need to tap it.”The $2.2 trillion pandemic stimulus package that authorized the airline loans gives Treasury until the end of the year to disburse them.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Major U.S. airlines are cutting worker hours and encouraging employees to take voluntary leave or early retirement.
After a brief rally earlier in the week on hopes of an improving economy, airline shares are in the red once again on Thursday. Shares of American Airlines Group (NASDAQ: AAL) were down 6.6% as of 2:30 p.m. EDT and shares of United Airlines Holdings (NASDAQ: UAL) were down 4.4%. Delta Air Lines (NYSE: DAL), which earlier in the day was down 5.2%, had recovered some of that loss, but were still down on a day when broader markets are up.
Airlines' improved cash flow and cost-control measures helped them with enough capital to tide over the crisis, and now with improved traffic, things are certainly looking up for airliners.
Tuesday morning brought a big upward move to the stock market, largely in response to growing optimism about the reopening of the U.S. economy as fears about the coronavirus pandemic seem to be subsiding. The Nasdaq Composite (NASDAQINDEX: ^IXIC) lagged somewhat behind broader market benchmarks, but it was still up 0.7% shortly before noon EDT. The Nasdaq 100 Index of larger Nasdaq-listed stocks was up a more modest 0.4%.
Several airline stocks posted spectacular gains last week, but despite some positive data points, investors shouldn't expect a quick recovery in air travel demand.
JetBlue Airways on Thursday defended itself against accusations from a group of Democratic senators who called out the air carrier out for cutting wages and hours.
Aurora Cannabis (NYSE: ACB) has been in the news a lot lately, and it made a strategic move that caused its stock to soar Thursday. Meanwhile, United Airlines Holdings (NASDAQ: UAL) continued to gain altitude as carriers aim to find a pathway toward getting passengers back into the skies. Shares of Aurora Cannabis jumped 26% on Thursday morning.
The summer travel season is a big revenue generator for U.S. airlines but the coronavirus threatens the carriers and risk assessment firm RapidRatings warns American Airlines is the most at risk of going bankrupt.
Shares of United Airlines Holdings (NASDAQ: UAL) climbed more than 5% on Wednesday after the airline outlined enhanced safety guidelines in an effort to get travelers flying again. The initiative comes a day after United and other airlines said they are seeing signs that consumers are once again beginning to think about travel. Airlines including United have been hit hard by the COVID-19 pandemic, with United seeing gross bookings fall 95% year over year in April.
Economies are finally reopening and flyers are getting back confidence with slower ticket cancellations and an uptick in demand for tickets.
United Airlines Holdings (NASDAQ: UAL) in June has work for only about 3,000 of its 25,000 flight attendants in June, according to reports, highlighting how deep cuts to the airline's schedule have been and just how unsustainable current airline business practices are. Airlines have been hit hard by the COVID-19 pandemic, which has caused travel demand to evaporate. The industry, United included, has responded by cutting flights and grounding planes, but, as a condition of the $50 billion government bailout package, airlines are prohibited from furloughing or laying off workers.
Airlines are reportedly not forcing passengers to wear masks on planes, but this is contradictory to what the flight attendants union has asked for.