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Air Canada Cancels 737 Max Flights Into 2020

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airlines/air-canada.html” target=”_self” rel=”nofollow noopener noreferrer”>Air Canada, like Southwest Airlines, has removed 737 Max flights from its schedule into 2020.

According to a report in Bloomberg, Canada’s largest air carrier will reduce capacity and curb earnings for the 3rd quarter even as it beat forecasts in the second.

“The impact of the Boeing 737 Max grounding will be felt more acutely in our very busy summer period,” Calin Rovinescu, president and chief executive officer of Air Canada said in an earnings statement.

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Rovinescu added that the removal of Boeing 737 Max will last at least through January 8, 2020.

This “reflects our prudent approach to scheduling, giving customers certainty when booking their fall and especially their winter holiday travel,” he said.

In the earnings statement, Air Canada also projected a drop in capacity of 2 percent in the third quarter. Third-quarter earnings before interest, taxes, depreciation and amortization is expected to increase by about 5%, short of analysts’ estimates.

airlines/southwest-cancels-737-max-to-2020-adds-flights-to-hawaii-mexico.html” target=”_self” rel=”nofollow noopener noreferrer”>Southwest Airlines similarly extended its cancelation of the controversial Boeing planes until at least January 5, 2020. As a result, the airline is pulling out of Newark-Liberty International and is consolidating service to New York’s La Guardia airport.

“As such, we are taking necessary steps to mitigate damages and optimize our aircraft and resources,” Southwest said in an in its earnings release.

In June, Boeing announced that the Boeing 737 Max aircraft would again be delayed and hopes that the planes would be back in service by the end of the summer were dashed. The planes were grounded in March after two separate crashes resulted in the deaths of 346 people.

This post was published by our news partner: TravelPulse.com | Article Source |

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United Puts Financial Losses Into Shocking Perspective

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With the demand for travel at an all-time low thanks to stay-at-home directives and severe travel restrictions, United Airlines on Thursday put the industry’s financial losses into a stark perspective.

According to the aviation blog The Points Guy, which had privy to view a virtual town hall held by the carrier, United is losing “over $100 million a day” due to the impact of the coronavirus global pandemic, United president Scott Kirby said.

Kirby conducted the town hall along with current CEO Oscar Munoz, who is stepping down in favor of Kirby later this year.

As The Points Guy pointed out, United cut almost 70 percent of its schedule in April with further cuts likely for May—as all airlines have. In fact, predictions going forward are dire. The International Air Transport Association (IATA) said they expect airlines to lose a collective $61 billion in the second quarter of this year (April, May and June).

United said it will pursue some of the $25 billion in grants available for employee compensation from the U.S. government stimulus package, as well as consider whether to apply for some of the $25 billion in loans. But this is all uncharted territory for the industry, even after the financial devastation from the Sept. 11, 2001 terrorist attacks.

“One of the lessons from this is, our stress test from 9/11 wasn’t stressful enough,” Kirby said in reference to United’s preparations and need for cash to keep operating.

United has not decided whether to permanently retire any jets as a result of the coronavirus, according to The Points Guy.

“If we want to emerge stronger, if we want to emerge the world’s leading airline on the other side of this, we have to have flexibility,” he said.

This post was published by our news partner: TravelPulse.com | Article Source

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