Even before President Trump announced U.S.-Europe travel restrictions, United Airlines said it was prepared for its revenue to fall as much as 70%.
With the coronavirus outbreak prompting new travel restrictions, airlines, cruise ships and other travel businesses scrambled Thursday to soften the financial blow that some industry experts were comparing to what followed the terrorist strikes of Sept. 11, 2001.between the U.S. and Europe, airlines began discussing with employees ways to reduce their workforce through voluntary buyouts and other options. At least one foreign carrier has announced plans to lay off workers.
The Santa Clarita-based cruise line said it planned to dock all current cruises at the nearest available port and transport passengers home. The flight restrictions would affect nearly 11% of all flights from the United States, OAG estimated. Delta and United Airlines would be the hardest hit, accounting for 31% of the affected flights.
The world’s airline industry, which had been reporting increased demand over the last decade, could be hit with $113 billion in revenue losses in 2020, with carriers in the U.S. and Canada absorbing about $20 billion of that hit, according to a recent estimate by the International Air Transport Assn., a trade group for the world’s airlines.
“Temporarily shutting off travel from Europe is going to exacerbate the already heavy impact of cononavirus on the travel industry and the 15.7 million Americans whose jobs depend on travel,” said Roger Dow, president and CEO of the U.S. Travel Assn. trade group.Industry experts say U.S. airlines are much better prepared to absorb the losses than they were after the Sept. 11, 2001, attacks when the drop in demand led some airlines to file for bankruptcy protection.
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