U.S. Airlines Show Moderate Upward Trend in Bookings
1 Major U.S. airlines are seeing a modest bump in bookings for summer 2020 and even earlier — nothing like last year, but a positive trend during a time that has been devoid of good news for airlines.
American Airlines is expecting a 35% load factor in May which is a marked improvement from the 15% load factor it ran in April. After slashing 80% of its April and May capacity, the airline will slash “just” 70% for the coming summer months June.
As we reported yesterday, Delta is adding about 100 flights back to its schedule next month to increase onboard capacity. Delta is also seeing a positive trend for June & July bookings. The caveat is that the airline continues to offer no change fees which brings into question whether or not passengers will actually fly what they’ve booked.
Southwest is also seeing some strength with load factors between 25 and 30%. This is good news since Southwest has cut flying less than others, so it demonstrates significant passenger numbers.
United will “only” be cutting capacity in June July by 75%, an improvement from the nearly 90% cut it has endured in April and May and June. Like everyone else, nearly all of United’s near-term focus is on the domestic market, but the airline is seeing an upward trend for its bookings in Latin America. United plans to run approximately 20% of the international operation it ran last summer, with much of it being fueled by cargo, not passenger traffic.
United Brands Its Cleaning Process as CleanPlus
2 First there was Delta Clean, then there was the Southwest Promise, and now we have United CleanPlus. United has announced that it is bundling together all of its new cleaning/distancing procedures into one neat package under the CleanPlus brand. As part of this, United will partner with Clorox for cleaning products and the Cleveland Clinic for guidance on policies and procedures.
United CEO, Scott Kirby said “We recognize that COVID-19 has brought cleanliness and hygiene standards to the front of customers’ minds when making travel decisions, and we’re not leaving a single stone unturned in our pursuit to better protect our customers and employees.”
Most of this appears to be a marketing effort for the robust initiatives that are already in place, though a couple of the inclusions appear to be new. Most notably, United said that starting this Friday, coach passengers flying more than 2 hours and 20 minutes will no longer have a beverage/snack service. Instead, they will receive a snack bag that includes wrapped sanitizer wipe, an 8.5 oz. bottled water, a Stroopwafel, and a package of pretzels.
This leaves American as the last of the big four to not brand its cleanliness programs. We suggest CleAAn AAdvantage.
Scott Kirby Officially Takes the Helm as United’s CEO
3 It’s been a long time coming, but today Scott Kirby officially ascended to the role of CEO of United Airlines. Previous CEO Oscar Munoz has become the Executive Chairman of the Board while Brett Hart moves into Scott’s old position as President.
In his first official public communication as CEO, Scott tried to strike an uplifting tone. That contrasts with many of his most recent communications that are known for being truthful and realistic… but also gloomy. Scott has already been shepherding United through the COVID-19 crisis, so no transition hiccups are expected.
For Oscar, this marks the end of a turbulent but mostly positive time as United’s CEO. He is widely credited with steering the airline’s culture in a positive direction for the first time in years, if not decades. This was more remarkable considering that shortly after taking over, he had a heart transplant and was forced to sit on the sidelines for a surprisingly short time. His tenure was not without trouble. Most notably, the Dr Dao incident and the ensuing fumbled response set back his turnaround efforts, but his tenure will undoubtedly be remembered for the positive impact he had.
Qatar Cabin Crew to Wear Hazmat Suits
4 In order to protect its employees and improve passenger confidence, Qatar will have its on-board crew wear full personal protective equipment (PPE).
For the foreseeable future, Qatar cabin crew will wear hazmat suits over their uniforms, along with safety goggles, gloves, and masks during flights. There appears to be no truth to the rumor that, in a partnership with Intel, Qatar will have cabin crews break every hour to sing along and dance to “Play that Funky Music.”
Crew on Qatar have been wearing masks or face coverings on-board for several weeks now, and the airline will require the same of its passengers beginning this Monday, May 25.
Additionally, further new protective measures include serving business class meals on a tray with a cutlery wrap offered to passengers rather than individual cutlery service. Large bottles of hand sanitizer will also be placed in the galleys for all to use, and everyone is asked to adhere to social distancing guidelines on board, as if that were possible.
Etihad Flies Historic Aid Flight to Tel Aviv
5 Etihad flew from Abu Dhabi to Tel Aviv on Tuesday on a plane loaded with virus aid for Palestinians. The flight is the first known commercial flight between Israel and the UAE.
The United Nations coordinated a 16-tonne shipment of “urgent medical supplies” from the UAE to help curb the spread of COVID-19 in the Palestinian territories, according to a statement from the United Nations Special Coordinator for the Middle East Peace Process (UNSCO).
“The aid includes personal protective equipment (PPE) and medical equipment. Most notably, it includes 10 ventilators that are acutely needed,” the statement added.
The sensitive nature of relations in the Middle East meant that special precautions had to be taken. Painted all white and lacking any visible Etihad logos, the aircraft bore the letters YP on its front landing gear doors, consistent with an Airbus A330-200 with the Emirati registration A6-EYP. This is just a one-off event, but thawing diplomatic relations could lead to further flying down the road.
Airline Potpourri
- Alitalia will bring back long-haul flying on June with the return of a Rome to New York/JFK flight. It will also re-start flying from Rome to Spain and from Milan to Southern Italy.
- EasyJet was a hacking victim, or rather its customers were, with nine million of them having some portion of their data breached.
- LATAM will be laying off 1,400 staff in Chile, Colombia, Ecuador and Peru.
- Norwegian lives to see another day. Now that its recapitalization plan is complete, it has accessed the state funding offered by Norway.
- Singapore posted a full-year loss of $149 million for its fiscal year that ended March 31, the first full-year loss in the nearly 50-year history of the airline.
- South African received another lifeline from the government as it waits for a rescue plan to magically appear.
- Turkish has extended its shutdown of domestic flights until June 4 with international flights suspended until June 10.
Andrew’s Moment of Levity
I started losing hair when I was a senior in college, and I was nearly completely bald by 30. I still carry a comb around in my pocket, I just can’t part with it.