Page 10 - TMI April 2020 hi-res

INSIDER

Airline CEOs update on coronavirus impacts and airlines’

commitment

With airlines throughout the nation and JetBlue –are offering free flights to capacity by at least 20%, freeze hiring and
facing rock bottom load factors, carriers medical personnel traveling to certain offer leave to workers to reduce operating
are losing money on every single flight, U.S. regions that have been significantly costs. The Dallas-based carrier secured a
according to Southwest Airlines Chief impacted by COVID-19 to support medical $1 billion term loan and drew down the full
Executive Officer Gary Kelly, in a speech professionals on the front lines. amount of an existing $1 billion unsecured
to employees cited by Bloomberg. “Three months ago, I would have revolving credit facility earlier this month,
On March 25, security officials at U.S. never dreamt our world would be facing reports Bloomberg.
airports screened just 239,000 passengers, such volatile times, but I remain confident In other related news, Airlines for
down from 2.2 million a year earlier, we will prevail because of you and the America reported that United Airlines
according to trade group Airlines for people of Delta,” he said. operated 21 repatriation flights to bring
America. American Airlines announced that it nearly 2,500 Americans home from
While hard hit by the current crisis, will suspend 60% of its capacity in April Panama, Ecuador, Peru and Honduras. Air
Delta Airline’s chief executive, Ed Bastian, as compared to the same period in 2019 Canada has been operating special flights to
is one of the airline industry leaders and is planning to suspend up to 80% of repatriate Canadians from Morocco, Spain,
stressing the carrier’s commitments during its capacity in May compared to the same Peru and Ecuador.
the COVID-19 crisis. period in 2019. Air Canada has begun cargo-only
In a letter sent out on March 29, The domestic capacity reductions flights, carrying medical supplies and other
Bastien noted that the airline continues take into consideration the FAA’s recent time-sensitive freight to Europe. The airline
to carry medical supplies globally via decision to grant additional flexibility in has future plans for cargo-only flights
cargo flights and is operating repatriation slot-use policies at U.S. airports during this to Latin America and South America,
flights to get Americans home. Delta—like unprecedented situation. See page 8. and it is considering offering the service
several other airlines including Southwest Southwest earlier said it would reduce domestically.

ACI-NA details billions in losses for U.S. airports from COVID-19

Based on preliminary assessments commercial airports, is expected to fall by U.S. airports will have to pay $7.4 billion
by Airports Council International – North close to $1.6 billion in 2020. in cash payments to service those debt
America (ACI-NA), the COVID-19 This comes as ACI-NA reports that the obligations, as well as higher operating
outbreak will cost U.S. airports at least total outstanding debt for U.S. commercial expenses to upgrade cleaning and sanitizing
$13.9 billion in calendar year 2020, airports stands at roughly $100 billion. of their properties.
a significant setback from previously
forecasted stable growth prospects.
This estimate is based on the following Hawaii passenger arrivals by air
projections:
Passenger traffic at U.S. commercial The number of passengers flying into or crew members. In comparison, during
airports is expected to fall by 73% in the Hawaii continues to drop. On Sunday, this same time last year, more than 30,000
March to June period, which represents a March 29, 2020, 826 people arrived in passengers arrived in Hawaii daily,
Hawaii on the fourth day of the state’s
including residents and visitors. This table
53% decrease in the first half of 2020 and
a 37% drop for the full year compared to 14-day mandatory self-quarantine for all shows the number of people who arrived
forecasted 2020 levels. incoming passengers. Of that number, by air on March 29.
Total passenger enplanement is 167 people were visitors. Most of the
anticipated to fall by 244 million in the first passengers were either returning residents
half of the year and 349 million for the full
year.
Total airport operating revenue is
expected to decrease by roughly $12.3
billion for the calendar year, representing
a nearly 49% reduction driven by
cancellations and other reductions in
domestic and international air travel, as
well as dramatically lower non-aeronautical
revenue.
Collection of the Passenger Facility
Charge, a critical funding source for U.S.

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