Airlines aren't used to losing money.
REUTERS/Shannon Stapleton
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For years, the core group of US airlines raked in hundreds of millions of dollars in pure profit, which they spent freely on stock buybacks and service expansions. American Airlines, the largest domestic carrier, for instance, saw profits increase from $690 million in 2012 to $2.179 billion in 2019.
That is, until it all came crashing down.
Delta was the first airline to report its first quarter earnings this week , and things aren't looking good. It expects to lose $534 million for the three-month period, of which only the latter half was fully affected by the absolute plunge in travel.
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The other airlines are set to report in the coming week but don't expect things to get much better. United forecast in a surprise release that it would likely lose $2.1 billion for the quarter as revenues fall 90%.
So when will things get better? Your guess is as good as mine. As it stands now, nearly three quarters of Americans say they won't fly for at least four months, according to a Fortune-SurveyMonkey poll. Adios, summer vacation plans
Heres what else happened this week:
- Post office employees say they haven't been given appropriate safety supplies to provide what is, arguably, one of the most essential government services.
- The helicopter company involved in the crash that killed Kobe Bryant and his daughter faces two more wrongful death lawsuits by the families of other passengers.
- Maven, GM's car-sharing service, is shutting down as the coronavirus pandemic upends mobility startups
- A top energy analyst pinpoints the 3 winners and 3 losers in this week's historic oil-price collapse
- Dozens of truckers shut down a busy Houston interstate to protest low pay
- TSA employees have contracted COVID-19 at 58 airports in the US despite few travelers
- American Airlines just raised its checked bag fees, even though hardly anyone is flying right now
- The CEO of Ryanair, one of the world's biggest airlines, says it won't fly if middle seats have to stay empty for 'idiotic' social-distancing rules
- Data shows exactly how much highway speeds in 25 major metropolitan areas have shot up since coronavirus lockdowns began
- Bird's COO once reportedly got drunk and pretended to fire random employees over Slack as a joke
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See Also:
- American Airlines just raised its checked bag fees, even though hardly anyone is flying right now
- Coronavirus demolished air travel around the globe. These 14 charts show how empty the skies are right now.
- Many of the world's airlines could be bankrupt by May because of the COVID-19 crisis, according to an aviation consultancy. These airlines have already collapsed because of the pandemic.