American Airlines Group announced their decision this week to eliminate most of their international flights through the summer; citing plummeting global demand as governments struggle to contain the Coronavirus outbreak.
“Overseas flight capacity will be trimmed 60% from last summer’s level, paced by an 80% drop across the Pacific, the carrier said Thursday. At least 23 seasonal routes won’t operate at all, while several that were to start this year will be delayed until 2021. American, which has said domestic capacity will fall as much as 80% next month, is still working on its U.S. summer schedule,” reports Yahoo News.
“The extended reductions in flights abroad highlight the extent if the virus’s damage to airlines, which need tickets to be booked months in advance to set aircraft and crew schedules. American plans to apply for as much as $12 billion in U.S. government aid and has already grounded most of its wide-body aircraft normally used on flights abroad,” adds the website.
“This is going to be a challenging situation for a long time to come,” Vasu Raja, American’s senior vice president for network development said recently. “We’re not seeing any bookings come in. It’s not just in May or June that we’ll have an issue, but we’ve missed so many bookings in July and August that it makes more sense to reduce that capacity now and try to save on as many expenses as we can.”
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Source: Yahoo Finance