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Airlines Feel Deepening Impact as Coronavirus Upends Travel Airlines Feel Deepening Impact as Coronavirus Upends Travel
(3 days later)
Since the financial crisis a decade ago, airlines in the United States have consolidated and tightened operations, taken advantage of changing travel habits and created new offerings for passengers, engineering an extended stretch of profitability.Since the financial crisis a decade ago, airlines in the United States have consolidated and tightened operations, taken advantage of changing travel habits and created new offerings for passengers, engineering an extended stretch of profitability.
Now, the coronavirus threatens to put all of that to the test.Now, the coronavirus threatens to put all of that to the test.
The latest example of the outbreak’s toll on the industry came on Wednesday, when United Airlines became the first U.S. carrier to announce a widespread cut to domestic service, signaling that fear over the virus was starting to erode ticket sales far from the hot spots of the epidemic.The latest example of the outbreak’s toll on the industry came on Wednesday, when United Airlines became the first U.S. carrier to announce a widespread cut to domestic service, signaling that fear over the virus was starting to erode ticket sales far from the hot spots of the epidemic.
In a letter to employees, the airline’s top two leaders announced plans to cut international service in April by about 20 percent and domestic service by about 10 percent, with similar cuts possible in May. They also announced a hiring freeze through June and said workers in the United States could apply for voluntary unpaid leave.In a letter to employees, the airline’s top two leaders announced plans to cut international service in April by about 20 percent and domestic service by about 10 percent, with similar cuts possible in May. They also announced a hiring freeze through June and said workers in the United States could apply for voluntary unpaid leave.
“We sincerely hope that these latest measures are enough, but the dynamic nature of this outbreak requires us to be nimble and flexible moving forward,” Oscar Munoz, United’s chief executive, and J. Scott Kirby, who will take over that job in May, said in the letter.“We sincerely hope that these latest measures are enough, but the dynamic nature of this outbreak requires us to be nimble and flexible moving forward,” Oscar Munoz, United’s chief executive, and J. Scott Kirby, who will take over that job in May, said in the letter.
Trans-Pacific flights, for which demand had fallen starkly as the virus seized Asia, will be halved in April, while trans-Atlantic service will be cut by about 10 percent. Latin American service will be reduced by 5 percent.Trans-Pacific flights, for which demand had fallen starkly as the virus seized Asia, will be halved in April, while trans-Atlantic service will be cut by about 10 percent. Latin American service will be reduced by 5 percent.
In a statement in response to the United announcement, Sara Nelson, the president of the Association of Flight Attendants, said the airline was taking “a responsible approach” in responding to the coronavirus outbreak.In a statement in response to the United announcement, Sara Nelson, the president of the Association of Flight Attendants, said the airline was taking “a responsible approach” in responding to the coronavirus outbreak.
Business leaders and the administration are seeking to allay concerns about the virus and its toll on the industry.Business leaders and the administration are seeking to allay concerns about the virus and its toll on the industry.
Thomas J. Donohue, chief executive of the U.S. Chamber of Commerce, said at a news conference on Wednesday that the airline industry didn’t need “bailouts,” though he said that if regional airlines encountered difficulties, “we’ll figure out a way to bring assets together to keep them flying.”Thomas J. Donohue, chief executive of the U.S. Chamber of Commerce, said at a news conference on Wednesday that the airline industry didn’t need “bailouts,” though he said that if regional airlines encountered difficulties, “we’ll figure out a way to bring assets together to keep them flying.”
“Bottom line is we’re going to run just like business as usual, with a little higher heartbeat, and get it done,” he said.“Bottom line is we’re going to run just like business as usual, with a little higher heartbeat, and get it done,” he said.
Later, at a White House meeting with airline executives, President Trump dismissed a reporter’s question about whether the federal government would provide financial assistance to the industry. “Don’t ask that question, please,” he joked. “Because they haven’t asked it. So I don’t want you to give them any ideas.”Later, at a White House meeting with airline executives, President Trump dismissed a reporter’s question about whether the federal government would provide financial assistance to the industry. “Don’t ask that question, please,” he joked. “Because they haven’t asked it. So I don’t want you to give them any ideas.”
Mr. Trump and Vice President Mike Pence, who also attended the meeting, sought to allay public fear over the outbreak. “It’s safe to fly,” Mr. Trump said. “And large portions of the world are very safe to fly. So we don’t want to say anything other than that.”Mr. Trump and Vice President Mike Pence, who also attended the meeting, sought to allay public fear over the outbreak. “It’s safe to fly,” Mr. Trump said. “And large portions of the world are very safe to fly. So we don’t want to say anything other than that.”
As the virus has spread, the administration has been in close contact with representatives of the travel and tourism industry, according to Scott Solombrino, executive director of the Global Business Travel Association, an industry group for corporate travel managers. Officials at various agencies addressed concerns and provided updates to industry officials on a Monday call, for example.As the virus has spread, the administration has been in close contact with representatives of the travel and tourism industry, according to Scott Solombrino, executive director of the Global Business Travel Association, an industry group for corporate travel managers. Officials at various agencies addressed concerns and provided updates to industry officials on a Monday call, for example.
At the same time, the Centers for Disease Control and Prevention is seeking the authority to compel airlines to share data on passengers and crews arriving from abroad who may be at risk of exposure to the communicable disease. The airline industry has argued that such a requirement would be too onerous and instead recommended that the data be assembled from various agencies that collect passenger information.At the same time, the Centers for Disease Control and Prevention is seeking the authority to compel airlines to share data on passengers and crews arriving from abroad who may be at risk of exposure to the communicable disease. The airline industry has argued that such a requirement would be too onerous and instead recommended that the data be assembled from various agencies that collect passenger information.
After the financial crisis, the aviation industry underwent a period of consolidation, during which airlines focused on increasing capacity and efficiency. In recent years, they squeezed profits from new, premium offerings and by harnessing a shift, driven by millennials, toward valuing experiences more highly than goods.After the financial crisis, the aviation industry underwent a period of consolidation, during which airlines focused on increasing capacity and efficiency. In recent years, they squeezed profits from new, premium offerings and by harnessing a shift, driven by millennials, toward valuing experiences more highly than goods.
As a result, airlines ended 2019 on a positive note, but reports of the coronavirus outbreak began surfacing at the start of January. Before the month was out, it had spread far enough that all three airlines had announced plans to suspend service to China, the center of the epidemic, because of plummeting demand.As a result, airlines ended 2019 on a positive note, but reports of the coronavirus outbreak began surfacing at the start of January. Before the month was out, it had spread far enough that all three airlines had announced plans to suspend service to China, the center of the epidemic, because of plummeting demand.
Since then, shares of United and American Airlines have lost about a third of their value. Delta is down somewhat less, about 18 percent.Since then, shares of United and American Airlines have lost about a third of their value. Delta is down somewhat less, about 18 percent.
United said last week that the impact of the coronavirus on its first-quarter earnings would be offset by lower fuel costs. But it withdrew its financial guidance for the rest of the year.United said last week that the impact of the coronavirus on its first-quarter earnings would be offset by lower fuel costs. But it withdrew its financial guidance for the rest of the year.
JetBlue also separately said on Wednesday that it would reduce service temporarily by about 5 percent and would take several steps to shore up cash, including reducing hiring, offering voluntary leave and limiting spending.JetBlue also separately said on Wednesday that it would reduce service temporarily by about 5 percent and would take several steps to shore up cash, including reducing hiring, offering voluntary leave and limiting spending.
Updated June 2, 2020 Updated June 5, 2020
The unemployment rate fell to 13.3 percent in May, the Labor Department said on June 5, an unexpected improvement in the nation’s job market as hiring rebounded faster than economists expected. Economists had forecast the unemployment rate to increase to as much as 20 percent, after it hit 14.7 percent in April, which was the highest since the government began keeping official statistics after World War II. But the unemployment rate dipped instead, with employers adding 2.5 million jobs, after more than 20 million jobs were lost in April.
Mass protests against police brutality that have brought thousands of people onto the streets in cities across America are raising the specter of new coronavirus outbreaks, prompting political leaders, physicians and public health experts to warn that the crowds could cause a surge in cases. While many political leaders affirmed the right of protesters to express themselves, they urged the demonstrators to wear face masks and maintain social distancing, both to protect themselves and to prevent further community spread of the virus. Some infectious disease experts were reassured by the fact that the protests were held outdoors, saying the open air settings could mitigate the risk of transmission.Mass protests against police brutality that have brought thousands of people onto the streets in cities across America are raising the specter of new coronavirus outbreaks, prompting political leaders, physicians and public health experts to warn that the crowds could cause a surge in cases. While many political leaders affirmed the right of protesters to express themselves, they urged the demonstrators to wear face masks and maintain social distancing, both to protect themselves and to prevent further community spread of the virus. Some infectious disease experts were reassured by the fact that the protests were held outdoors, saying the open air settings could mitigate the risk of transmission.
Exercise researchers and physicians have some blunt advice for those of us aiming to return to regular exercise now: Start slowly and then rev up your workouts, also slowly. American adults tended to be about 12 percent less active after the stay-at-home mandates began in March than they were in January. But there are steps you can take to ease your way back into regular exercise safely. First, “start at no more than 50 percent of the exercise you were doing before Covid,” says Dr. Monica Rho, the chief of musculoskeletal medicine at the Shirley Ryan AbilityLab in Chicago. Thread in some preparatory squats, too, she advises. “When you haven’t been exercising, you lose muscle mass.” Expect some muscle twinges after these preliminary, post-lockdown sessions, especially a day or two later. But sudden or increasing pain during exercise is a clarion call to stop and return home.Exercise researchers and physicians have some blunt advice for those of us aiming to return to regular exercise now: Start slowly and then rev up your workouts, also slowly. American adults tended to be about 12 percent less active after the stay-at-home mandates began in March than they were in January. But there are steps you can take to ease your way back into regular exercise safely. First, “start at no more than 50 percent of the exercise you were doing before Covid,” says Dr. Monica Rho, the chief of musculoskeletal medicine at the Shirley Ryan AbilityLab in Chicago. Thread in some preparatory squats, too, she advises. “When you haven’t been exercising, you lose muscle mass.” Expect some muscle twinges after these preliminary, post-lockdown sessions, especially a day or two later. But sudden or increasing pain during exercise is a clarion call to stop and return home.
States are reopening bit by bit. This means that more public spaces are available for use and more and more businesses are being allowed to open again. The federal government is largely leaving the decision up to states, and some state leaders are leaving the decision up to local authorities. Even if you aren’t being told to stay at home, it’s still a good idea to limit trips outside and your interaction with other people.States are reopening bit by bit. This means that more public spaces are available for use and more and more businesses are being allowed to open again. The federal government is largely leaving the decision up to states, and some state leaders are leaving the decision up to local authorities. Even if you aren’t being told to stay at home, it’s still a good idea to limit trips outside and your interaction with other people.
Touching contaminated objects and then infecting ourselves with the germs is not typically how the virus spreads. But it can happen. A number of studies of flu, rhinovirus, coronavirus and other microbes have shown that respiratory illnesses, including the new coronavirus, can spread by touching contaminated surfaces, particularly in places like day care centers, offices and hospitals. But a long chain of events has to happen for the disease to spread that way. The best way to protect yourself from coronavirus — whether it’s surface transmission or close human contact — is still social distancing, washing your hands, not touching your face and wearing masks.Touching contaminated objects and then infecting ourselves with the germs is not typically how the virus spreads. But it can happen. A number of studies of flu, rhinovirus, coronavirus and other microbes have shown that respiratory illnesses, including the new coronavirus, can spread by touching contaminated surfaces, particularly in places like day care centers, offices and hospitals. But a long chain of events has to happen for the disease to spread that way. The best way to protect yourself from coronavirus — whether it’s surface transmission or close human contact — is still social distancing, washing your hands, not touching your face and wearing masks.
Common symptoms include fever, a dry cough, fatigue and difficulty breathing or shortness of breath. Some of these symptoms overlap with those of the flu, making detection difficult, but runny noses and stuffy sinuses are less common. The C.D.C. has also added chills, muscle pain, sore throat, headache and a new loss of the sense of taste or smell as symptoms to look out for. Most people fall ill five to seven days after exposure, but symptoms may appear in as few as two days or as many as 14 days.Common symptoms include fever, a dry cough, fatigue and difficulty breathing or shortness of breath. Some of these symptoms overlap with those of the flu, making detection difficult, but runny noses and stuffy sinuses are less common. The C.D.C. has also added chills, muscle pain, sore throat, headache and a new loss of the sense of taste or smell as symptoms to look out for. Most people fall ill five to seven days after exposure, but symptoms may appear in as few as two days or as many as 14 days.
If air travel is unavoidable, there are some steps you can take to protect yourself. Most important: Wash your hands often, and stop touching your face. If possible, choose a window seat. A study from Emory University found that during flu season, the safest place to sit on a plane is by a window, as people sitting in window seats had less contact with potentially sick people. Disinfect hard surfaces. When you get to your seat and your hands are clean, use disinfecting wipes to clean the hard surfaces at your seat like the head and arm rest, the seatbelt buckle, the remote, screen, seat back pocket and the tray table. If the seat is hard and nonporous or leather or pleather, you can wipe that down, too. (Using wipes on upholstered seats could lead to a wet seat and spreading of germs rather than killing them.)If air travel is unavoidable, there are some steps you can take to protect yourself. Most important: Wash your hands often, and stop touching your face. If possible, choose a window seat. A study from Emory University found that during flu season, the safest place to sit on a plane is by a window, as people sitting in window seats had less contact with potentially sick people. Disinfect hard surfaces. When you get to your seat and your hands are clean, use disinfecting wipes to clean the hard surfaces at your seat like the head and arm rest, the seatbelt buckle, the remote, screen, seat back pocket and the tray table. If the seat is hard and nonporous or leather or pleather, you can wipe that down, too. (Using wipes on upholstered seats could lead to a wet seat and spreading of germs rather than killing them.)
More than 40 million people — the equivalent of 1 in 4 U.S. workers — have filed for unemployment benefits since the pandemic took hold. One in five who were working in February reported losing a job or being furloughed in March or the beginning of April, data from a Federal Reserve survey released on May 14 showed, and that pain was highly concentrated among low earners. Fully 39 percent of former workers living in a household earning $40,000 or less lost work, compared with 13 percent in those making more than $100,000, a Fed official said.
Taking one’s temperature to look for signs of fever is not as easy as it sounds, as “normal” temperature numbers can vary, but generally, keep an eye out for a temperature of 100.5 degrees Fahrenheit or higher. If you don’t have a thermometer (they can be pricey these days), there are other ways to figure out if you have a fever, or are at risk of Covid-19 complications.Taking one’s temperature to look for signs of fever is not as easy as it sounds, as “normal” temperature numbers can vary, but generally, keep an eye out for a temperature of 100.5 degrees Fahrenheit or higher. If you don’t have a thermometer (they can be pricey these days), there are other ways to figure out if you have a fever, or are at risk of Covid-19 complications.
The C.D.C. has recommended that all Americans wear cloth masks if they go out in public. This is a shift in federal guidance reflecting new concerns that the coronavirus is being spread by infected people who have no symptoms. Until now, the C.D.C., like the W.H.O., has advised that ordinary people don’t need to wear masks unless they are sick and coughing. Part of the reason was to preserve medical-grade masks for health care workers who desperately need them at a time when they are in continuously short supply. Masks don’t replace hand washing and social distancing.The C.D.C. has recommended that all Americans wear cloth masks if they go out in public. This is a shift in federal guidance reflecting new concerns that the coronavirus is being spread by infected people who have no symptoms. Until now, the C.D.C., like the W.H.O., has advised that ordinary people don’t need to wear masks unless they are sick and coughing. Part of the reason was to preserve medical-grade masks for health care workers who desperately need them at a time when they are in continuously short supply. Masks don’t replace hand washing and social distancing.
If you’ve been exposed to the coronavirus or think you have, and have a fever or symptoms like a cough or difficulty breathing, call a doctor. They should give you advice on whether you should be tested, how to get tested, and how to seek medical treatment without potentially infecting or exposing others.If you’ve been exposed to the coronavirus or think you have, and have a fever or symptoms like a cough or difficulty breathing, call a doctor. They should give you advice on whether you should be tested, how to get tested, and how to seek medical treatment without potentially infecting or exposing others.
If you’re sick and you think you’ve been exposed to the new coronavirus, the C.D.C. recommends that you call your healthcare provider and explain your symptoms and fears. They will decide if you need to be tested. Keep in mind that there’s a chance — because of a lack of testing kits or because you’re asymptomatic, for instance — you won’t be able to get tested.If you’re sick and you think you’ve been exposed to the new coronavirus, the C.D.C. recommends that you call your healthcare provider and explain your symptoms and fears. They will decide if you need to be tested. Keep in mind that there’s a chance — because of a lack of testing kits or because you’re asymptomatic, for instance — you won’t be able to get tested.
Since January, airlines have reduced or canceled service to Hong Kong, South Korea, Japan, Italy and other destinations, as demand for travel abroad slid. And while international routes make up only a small share of major airlines’ service, they are significantly more profitable than flights within the United States.Since January, airlines have reduced or canceled service to Hong Kong, South Korea, Japan, Italy and other destinations, as demand for travel abroad slid. And while international routes make up only a small share of major airlines’ service, they are significantly more profitable than flights within the United States.
“If you fill the first- and the business-class cabin of trans-Pacific or trans-Atlantic service, you can pretty much cover all of your operating costs just from those two cabins,” said John Grant, a senior analyst at the aviation data provider OAG. To do the same domestically, an airline would have to sell about 80 percent of the seats on a flight, he said.“If you fill the first- and the business-class cabin of trans-Pacific or trans-Atlantic service, you can pretty much cover all of your operating costs just from those two cabins,” said John Grant, a senior analyst at the aviation data provider OAG. To do the same domestically, an airline would have to sell about 80 percent of the seats on a flight, he said.
For some, the airline’s international loss is a domestic passenger’s gain, as carriers reallocate some of the larger planes with better seats for domestic service, according to an OAG analysis.For some, the airline’s international loss is a domestic passenger’s gain, as carriers reallocate some of the larger planes with better seats for domestic service, according to an OAG analysis.
“If you get a good seat, you might be lying flat for an hour and a half,” Mr. Grant said.“If you get a good seat, you might be lying flat for an hour and a half,” Mr. Grant said.
But there are growing signs that domestic demand is starting to suffer, too, as concern spreads among the public, corporate events are canceled, and large businesses ask employees to refrain from flying.But there are growing signs that domestic demand is starting to suffer, too, as concern spreads among the public, corporate events are canceled, and large businesses ask employees to refrain from flying.
On Tuesday, Ford Motor Company, which employs nearly 200,000 people, told workers to stop all international and U.S. domestic air travel, and to use videoconferences as much as possible for critical meetings.On Tuesday, Ford Motor Company, which employs nearly 200,000 people, told workers to stop all international and U.S. domestic air travel, and to use videoconferences as much as possible for critical meetings.
General Motors, which employs about 164,000 people, has stopped all worker travel to China, Japan, South Korea and Italy, and restricted international travel to other locations only for essential matters.General Motors, which employs about 164,000 people, has stopped all worker travel to China, Japan, South Korea and Italy, and restricted international travel to other locations only for essential matters.
How long such bans will last is unclear, according to a poll conducted last week by the Global Business Travel Association. Among corporate travel managers who had canceled or suspended employee trips, only 31 percent expected to lift such restrictions within three months. More than half, 54 percent, said they didn’t know when the travel would resume.How long such bans will last is unclear, according to a poll conducted last week by the Global Business Travel Association. Among corporate travel managers who had canceled or suspended employee trips, only 31 percent expected to lift such restrictions within three months. More than half, 54 percent, said they didn’t know when the travel would resume.
To address similar uncertainty among the broader public, United, Delta and American have all said in recent days that they would waive change fees for flights booked in the coming weeks.To address similar uncertainty among the broader public, United, Delta and American have all said in recent days that they would waive change fees for flights booked in the coming weeks.
But what travelers may really need is the assurance that it is safe to fly, Nicholas E. Calio, the chief executive of the trade association Airlines for America, said at the White House meeting on Wednesday.But what travelers may really need is the assurance that it is safe to fly, Nicholas E. Calio, the chief executive of the trade association Airlines for America, said at the White House meeting on Wednesday.
“Right now, the fear is almost worse than the virus,” he said.“Right now, the fear is almost worse than the virus,” he said.
Ana Swanson and Neal E. Boudette contributed reporting.Ana Swanson and Neal E. Boudette contributed reporting.