Airlines Displaying Further Booking Losses Due to COVID-19

As COVID-19 infections continue to run rampant throughout the world and the U.S., the airline industries are reporting further booking deceleration.

As of today, there are 3.83 million confirmed cases of coronavirus in the U.S., 143,000 of which resulted in death. Concerns over the virus’ impact on health and safety, as well as the economy, have resulted in continual consequences throughout multiple industries. The airline industry is one of the worst-hit areas so far.

Airlines like Delta (DAL) reported over $5 billion in losses last week for their second quarter. While the airline was hopeful for a slow recovery from pandemic-related losses earlier in the year, recovery efforts have now stalled again as infection rates rise across the U.S. and cause many cities and states to shut down again. To place things into perspective, at the beginning of the pandemic, Delta reported average losses of about $100 million each day. The airline also reported that it flew 93% fewer passengers than normal all through the second quarter. 

Airlines are taking significant measures to protect passengers and reduce infection transmission. Deep cleaning in between trips, spacing out passengers and crew, and the requirement of face masks are now the norm on many planes. But those in the airline industry state that recovery is still expected to be long and difficult. With increasing insecurity over the virus and due to many passengers not complying with guidelines set by airlines, many potential passengers are still unsure about flying in the near future.

At the time of this article’s writing, Delta stocks were down 2.29% to $26.43.

Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Trader Buzz). I have no business relationship with any company whose stock is mentioned in this article.


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