1. Why Thousands of Farmers Are Protesting In India
  2. Tiger Woods Transferred To New Hospital After Terrible Car Crash
  3. After Nearly 3 Decades, Fry’s Electronics Has Gone Out Of Business
  4. After 28 Years, Daft Punk Breaks Up
  5. NCAA Allowing 25% Capacity at March Madness Basketball Tournament 2021
  6. Death Toll Rises as Texas Has A Huge Power Outage
  7. The UAE Hope Spacecraft Takes First Photo of Mars
  8. Large Stadiums Set to Open in New York
  9. Trump’s Lawyer Admits To The Former President’s Lies
  10. Country Singer Morgan Wallen Dropped by Radio & Label After Using Racial Slur
  11. Fantastic Beasts 3 Shuts Down Filming After Positive COVID Test
  12. Popeyes Embraces GameStop Stock Madness + Subway Breaks Out New Deal
  13. Robinhood Receives 2 Lawsuits After Restricting Gamestop Trades
  14. Tesla Features it’s Model Y For First Annual Profit
  15. 2020 NCAA Revenue Drops 50% After Basketball Tournament Cancellation
  16. Biden Gearing Up to Sign 10 Covid-19 Related Executive Orders
  17. Kroger’s New Smart Cart Eliminates Checkout Payments
  18. Exploring the Darkest Parts of the FBI’s History in “MLK/FBI”
  19. New York City Cutting Business Ties with Trump After Extreme Backlash
  20. Trump Lashes Out at Big Tech After Deadly Capitol Riot
  21. Legendary Dodgers Manager, Tommy Lasorda, Dead at 93
  22. Congress Calls for Trump’s Removal from Office
  23. Children of Bodom Guitarist Alexi Laiho Dead at 41
  24. “Soul” – The Most Inventive Movie of 2020
  25. As Unemployment Continues, Burger King Launches Dollar Menu
  26. ‘The Last Blockbuster’ – Feeling Nostalgic Yet?
  27. FDA Endorses Emergency Authorization of Moderna’s Coronavirus Vaccine
  28. Facebook Gaming Launches Black Creator Program
  29. Tom Brady’s Jersey Theft Arrested In Massachusetts
  30. Biden Will Ask Americans to Wear Masks for His First 100 Days
  31. Spotify Takes the Blame for Joe Rogan and Alex Jones Podcast Disappearance
  32. “Wonder Woman 1984” Set To Hit HBO Max and Movie Theaters
  33. Facebook Made Alterations to News Feed
  34. Make Way for Holiday Specials On Your Favorite Streaming Platforms
  35. Customers Stockpiling as COVID Cases Increase
  36. The Weeknd Set To Head Super Bowl 2020 Halftime show
  37. ‘Borat 2’ Star Maria Bakalova Moving Up In Hollywood
  38. Apple Makes Big Leaps at “One More Thing” Event
  39. Al Roker Diagnosed With Prostate Cancer
  40. New Set of Restaurant Restrictions Among Rising COVID-19 Cases
  41. Central Park Comes Alive With Music-Based App: Soundwalk
  42. Assassin’s Creed to Hit Netflix?
  43. Sony Confirms Netflix, Disney Plus, and Twitch for PS5 Launch
  44. Sacha Baron Cohen Disrupts Pence Rally Dressed As Trump
  45. Coca-Cola to Discontinue Tab Drink After 6 Decades Of Iconic Status
  46. Spotify Silent On Anti-Semitism
  47. Green Lantern Coming to HBO Max
  48. Trump’s Latest Immigration Restriction Fires Shots At Work Programs
  49. Avatar 2 & 3 Expected To Hit Theaters Soon!
  50. Target Set To Hire 130,000 Employees for Holiday Season
  51. Artists Deal With Increased Security Fees While Touring
  52. Tatiana Maslany Set to Play She-Hulk in New Marvel Film
  53. Come Check Out Facebook’s First Ray-Bans ‘Smart Glasses’
  54. Cardi B Files For Divorce From Offset
  55. Major Backlash for Disney Over Filming Mulan
  56. Beyond Meat To Expand Into China
  57. A Sad Day In Metal – Death of Power Trip’s Riley Gale At Age 34
  58. A Look Into Adam Sandler’s New Family-Friendly Horror Movie
  59. The QAnon Facebook Purge
  60. Ed Sheeran’s First Demo Album Up for Auction
  61. Oregon Food Bank Helping To Fight Hunger Statewide
  62. Neil Young Sues Trump’s Campaign for Using His Songs
  63. Marvel Ramping Up Production For Shang-Chi
  64. Pixel 4A Set For Early August Release?
  65. Backlash After Chainsmokers ‘Drive-In’ Charity Concert
  66. Airlines Losing Billions Due To Stalled Demand
  67. AMC Theaters Pushes Back Opening Once Again
  68. Snapchat Debuts Mini Apps With Headspace Meditations
  69. “Glee” Star Naya Rivera Saves Son Before Death
  70. Dinner Party Supergroup Debut Their New Album
  71. Is The United States Banning TikTok?
  72. Reddit Cracks Down On Hate With Subreddit Bans
  73. Face Mask Requirements Move To New States
  74. Disneyland’s Splash Mountain Set To Change
  75. New Fireworks Conspiracies Across the U.S.
  76. Canceling Theodore Roosevelt
  77. Starbucks Bans Black Lives Matter Clothing For Employees
  78. Top Industries Hit The Hardest By Coronavirus
  79. Top 10 Wholesaling Real Estate Companies In North Carolina
  80. Top 10 Side Hustle Ideas To Make More Money
  81. Kobe Bryant Dies In Helicopter Crash
  82. Second Deadly Coronavirus US Case Confirmed
  83. Mac Miller’s Family Releases “Circles” Album
  84. Eminem Drops Surprise New Album
  85. See the Full Coachella 2020 Lineup
  86. Jared Leto Stars In The New Trailer for “MORBIUS”
  87. Marvel Set to Unveil First Transgender Character–or is it?
  88. Are Real Estate Cash Homebuyer’s A Scam?
  89. Trump Killed a Guy and Now Twitter is Freaking Out about World War III
  90. The Top Ten Best Movies from 2019
  91. The Top 6 Albums of 2019
  92. Donald Trump is not really impeached!!!! (Real Footage)
  93. The Best “I’m Gonna Tell My Kids” Memes on Twitter
  94. “Joker 2” Announced with Director Todd Phillips To Helm Sequel
  95. Internet Sensation Grumpy Cat Dies At Age 7
  96. Maleficent Is Back in Disney’s Maleficent: Mistress of Evil
  97. IT: Chapter 2 Official Teaser Trailer
  98. Jaden Smith to Play Kanye in New TV Series?!
  99. J.I.D. Drops New Horror Themed Music Video For “151 Rum”
  100. Sonic The Hedgehog Official Trailer
  101. Director John Singleton Dies At 51
  102. Avengers: Endgame Expected To Make $300 Million The First Week
  103. Lil Dicky Hopes To Save “The Earth” In New Hilarious Music Video
  104. Will Smith Stars In A New Movie With Himself As “Gemini Man”
  105. Fast and The Furious Spinoff Features The Rock & Jason Statham
  106. French Montana Says Kanye West’s New Album Will “Change The World”
  107. Chucky Revived In New Child’s Play 2019 Trailer Of Remake
  108. Offset & Cardi B Drop Steamy New Video for “Clout”
  109. The Lion King Official Trailer Released
  110. Lollapalooza Announces It’s 2019 Lineup
  111. Joker Movie Teaser Trailer 2019
  112. Hip-Hop West Coast Artist Nipsey Hussle Shot & Killed
  113. Dora The Explorer Official Movie?!
  114. G-Eazy and Blueface Drop New Song for The “West Coast”
  115. Marvel Releases New Avengers: Endgame Trailer
  116. Fresh Prince of Bel-Air Remake?
  117. Game of Thrones Season 8 Official Trailer
  118. Cardi B & Bruno Mars Official New Music Video
  119. Oscar Winers for 2019 Academy Awards
  120. New Aladdin 2019 Trailers
  121. ALL 2019 Movie Releases Coming Out This Year
  122. “Modern Family” Show Canceled
  123. Rolling Loud 2019 Lineup Announced
  124. What Is A Vegan and What Is Vegan Food?
  125. Netflix Raising Prices…Again in 2019
  126. Funniest 10 Year Challenge Pics
  127. Spider-Man is Back in Spider-Man: Far From Home Official Trailer
  128. Funny Donald Trump Memes
  129. Woodstock 2019 Officially Announced
  130. How to Make Money on OfferUp
  131. R. Kelly Streams Go Up After Docuseries Airs on Lifetime
  132. Coachella 2019 Lineup
  133. Can the NFL Super Bowl End in a Tie?
  134. How To Make Money on eBay Selling
  135. How Amazon Music Works: Pros vs. Cons
  136. How to Make Money On Etsy
  137. How To Start Your Own Business
  138. Stranger Things: Season 3 Teaser Trailer (2019)
  139. Instagram’s New Update Outrages Users
  140. Jordan Peele’s New Movie Trailer ‘Us’ Looks Terrifying!
  141. Miss Spain First Transgender to Compete for Miss Universe
  142. MEN IN BLACK: INTERNATIONAL Official Trailer (2019)
  143. Hellboy (2019) Official Movie Trailer
  144. NFL Draft Moving to Las Vegas for 2020
  145. Offset Apologizes to Cardi B on Stage; Celebrities React
  146. How To Lose Weight For The New Year
  147. Godzilla Returns in Godzilla: King of the Monsters To Fight King Ghidorah
  148. Goodbye Facebook and Instagram? YouTube Now Has A Stories Feature
  149. MLB Oakland A’s Getting New Stadium Upgrade!
  150. Tumblr is Banning Adult Content from Their Platform
  151. Tips on How to Make Money Online
  152. Pork With Sautéed Granny Smith Apples
  153. BUTTERY ROASTED TURKEY FOR THANKSGIVING
  154. Ariana Grande – breathin (Official Music Video)
  155. Jennifer Lopez & Bad Bunny Drop New Music Video!
  156. NEW Toy Story 4 Trailers!! Meet The New Toys
  157. NEW POKEMON Movie Trailer!!
  158. 5 Tips That Will Make You a Successful Real Estate Agent
  159. The Top 25 Horror Movies of All Time
  160. Spotify is Now Letting Indie Artists Directly Upload Their Music
  161. Apple Announces NEW iPhone XS & XS Max and More…
  162. Louisiana Mayor Bans Nike Apparel from City Facilities
  163. Rapper Mac Miller Passes Away at Age 26
  164. Colin Kaepernick Facing Scrutiny for New Nike Ad?!
  165. MACHINE GUN KELLY FIRES BACK AT EMINEM (Listen to Diss)
  166. Listen to Eminem Kamikaze
  167. 6 MOST AMAZING MEANS OF TRANSPORT
  168. Burning Man Festival Taking Place This Weekend!
  169. Apple to build $5 billion campus for New Steve Jobs theater
  170. Instagram Changing its Features to Get Rid of Fake Accounts
  171. Apple to Introduce 3 New iPhones This Year?!
  172. “Get The Strap” Music Video – 6ix9ine, Casanova
  173. NFL Launches 2018 First Season Game on Sept. 6
  174. David Bowie’s Mentor Passes Away at 80
  175. Queen of Soul Breaks Record for Top Streams Since Passing
Airlines Losing Billions Due To Stalled Demand

This past Thursday, both Southwest Airlines and American Airlines published quarterly losses. With the rise of Coronavirus cases across the United States, the two airlines’ CEOs warned about the decline in demand.

As the spread of the virus moved throughout various states, both of these Texas-based carriers saw revenue tumble amid the second quarter. In fact, revenue dropped more than 86% in that quarter at American Airlines to just $1.6 billion. That number comes from $12 billion per year in years prior.

For Southwest Airlines, revenue dropped almost 83% to just over $1 billion. That number comes from the $5.9 billion that the company made in the past year.

Both CEOs say they don’t expect the industry to fully recover until a vaccine for COVID-19 appears.

Travel restrictions abroad mixed with spikes in infection, especially in places like New York, are the cause of lost hope for many airline companies. Southwest, American, and others, are cutting back on the number of flights as they burn through what is left of their cash.

“We will need to work harder now and adjust capacity during August and September”, said Gary Kelly, Southwest’s CEO. “Our goal was to break even by the end of the year. While that is still my goal, the first quarter might be more realistic.”

Southwest is expecting to see a 20-30% decrease in third-quarter capacity this year compared to last.

“We will allow demand to serve as a guide for capacity levels in the future”, said Derek Kerr, CFO of American Airlines.

He also noted that it was likely the airline would be cutting capacity, even more, come September.

The second quarter for American Airlines saw net losses of $2.1 billion while Southwest saw net losses of $915 million. After idling planes and cutting loose the burden of employees, as many of them volunteered to take time off, American Airlines was able to reduce its cash burn rate from $100 million per day back in April to $30 million per day in June.

For Southwest, the cash burn fell from $30 million per day in April to $16 million per day in June.

 

Lowering The Employee Count

For now, Southwest is trying to preserve its five-decade record of never having to furlough employees. Thanks to the fact that almost 17,000 employees took voluntary paid time off or took buyouts, Southwest was able to do this.

According to a spokesperson from Southwest Airlines, the company doesn’t ‘intend to pursue layoffs or furloughs, or cut benefits, until the year’s end.”

Under the terms set by a $25 billion federal aid package, which was made to provide a safety net for jobs, Airlines are prohibited from furloughing or laying off workers until September 30th.

Just this last week, however, American Airlines warned over 25,000 employees that they may want to begin applying for voluntary separation packages or planning on retiring early.

CEO Doug Parker said in a recent statement that “the most difficult part of the pandemic is the impact it has had on our team.” Robert Isom, president of the airline, followed up saying that they are “hopeful enhance voluntary programs will eliminate the need for furloughs.”

Tags: , , , ,

Related Article

Newsletter

Newsletter

Sign-up to be the first to get notified about the latest blogs!