Posted on 03/18/2020 10:25:25 AM PDT by C19fan
Delta Air Lines on Wednesday said it plans to cut its flying by an unprecedented 70%, on a year-over-year basis, after March revenue fell nearly $2 billion short of the same month last year as coronavirus devastates demand. The cuts to its flights will last “until demand starts to recover,” CEO Ed Bastian told employees.
“Our international operation will take the largest reduction, with over 80% of flying reduced over the next two to three months,” he said.
(Excerpt) Read more at cnbc.com ...
Salt Lake City or Death Valley.
CNBC -The leading voice of the destroy the economy movement. Every piece of bad economic news goes to the front with flashing banners for the financial people who watch the network.
(And we should, but they don't 'cause they know taxpayers will bail them out - Crony Capitalism at its worst)
Airlines, like many companies, are more into stock buy backs not rainy day funds.
No news is good news.
Ummm, airline don’t have billions of dollars in cash just sitting around. They have virtually no $$ coming in.
I understand. But the point being is they should be able to weather a storm better than that - having your hand out to the Gov. after a rough two weeks.
For us to keep 10K liquid isn't much off from Delta keeping 4 billion liquid. Just sayin'
share buybacks
This Dempanic will take a decade to recover from.
If Gubmint bailouts weren't so easy to obtain, maybe they would have to keep some cash liquid.
I've been on this site preaching against the dangers of this - and talking about how this has bloviated this market to fake levels for two years. FREEPERS: NAW!
CNBC -The leading voice of the destroy the economy movement. “
If you don’t realize that news like airlines are cutting capacity by 70% isn’t a hugely bad news item, you are ignoring reality.
The $hit is hitting the fan as we speak.
Best case scenario is that we got in front of this soon enough and things start turning in 2 weeks.
Look up Moses Lake, Washington, on google images. They have parked hundreds of the 737 aircraft there and are employing hundreds of people to keep the planes operable while they wait for the grounding order to end.
I suspect we will see the same at many major airports.
When I was young, flying wasn’t bad. Some terminal waits and a little turbulence. It has become such a miserable experience, I’m surprised it took so long for it to crater.
I flew Delta from a hub airport last night and it was a ghost town inside the airport. It was shocking to see how few people were in there in what is usually a very busy window for flights.
My flight was mostly full, but the flight to another hub city next to our gate had 31 passengers on a large plane. A couple of the older employees said the airport looked the same way after 9/11.
It was (and is) sort of surreal.
It’s the one industry that flies in the face of the conventional wisdom that the private sector can always do things better than government can.
The US major airlines have enjoyed several years of solid profits ... bordering on the obscene. If you travel by air fairly frequently you would know that the airlines tack on all sorts of additional charges, luggage, up grades in seating, etc.. In addition to packing in more seats on their all ready to crowded aircraft. I have no empathy whatsoever for the airlines ...
I just flew Delta back from Europe Monday afternoon / evening. It was full from Dublin to Boston, everyone trying to get back to The States from Europe. But Boston-Logan was totally deserted, and my final hop from Boston to Washington only had about six passengers.
The airlines are not going to survive this without government help, plain and simple. No one is going to be flying for a month or more.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.