gopbroek
Contributor
Yep they are desperate for revenue. The bailout money was a godsend but comes with strings of no layoffs (my wife and I's paychecks) but also the requirement to not drop routes. It's was a gamble the for the 2 week to 1 month shutdown (now 2 months) to hopefully have an air transport industry left to help allow the economy restart. Many aircraft have been placed in short term parking status to control costs but that is very limited relief, still paying all costs except fuel (at a 20 year low) but all labor and other cost are still there (which I am personally grateful for). The problem is the current system needs load factors of 80 -90% at last years prices to break even. The bailout helps but will not cover all actual cost till October so the industry is desperate to balance revenue needs but also bring the load factors back to allow 'normal' operations. I work the regional side and temporarily many routes that were operated by main line iron are being temporarily served by regional jets to control costs. If this does not work out come October the US airline industry, as a whole, will go into bankruptcy (which Warren Buffet signaled after the AAL earnings report and dumped all airline stock)That sounds like a good evaluation. They may still have the planes, but they're in long term parking, and they are laying off pilots, FAs, and support employees.
A couple of airlines have already given up assigned routes between the US and Europe rather than fly empty planes. I think they'll want to keep Cancun.
I just got an email from American about a trip we hope to take in a couple of weeks to California, if the state and our selected national parks are open. I think they are desperate for money and just trying to sell us seats instead of us using our Basic Economy tickets and taking our chances on switching for free after 24-hour check-in. I suspect many of those X seats aren't really taken. Like who would buy those four middle seats with seats on either side still for sale?