{"id":54307,"date":"2020-07-22T07:44:38","date_gmt":"2020-07-22T12:44:38","guid":{"rendered":"https:\/\/olduvai.ca\/?p=54307"},"modified":"2020-07-22T07:44:41","modified_gmt":"2020-07-22T12:44:41","slug":"demand-to-remain-suppressed-till-vaccine-treatment-widely-available-united-airlines-may-not-happen-till-late-2021-or-even-later-health-care-leaders","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=54307","title":{"rendered":"\u201cDemand to Remain Suppressed\u201d till Vaccine\/Treatment Widely Available: United Airlines. May Not Happen till Late 2021 \u201cor Even Later\u201d: Health Care Leaders"},"content":{"rendered":"\n

\u201cDemand to Remain Suppressed\u201d till Vaccine\/Treatment Widely Available: United Airlines. May Not Happen till Late 2021 \u201cor Even Later\u201d: Health Care Leaders<\/a><\/h3>\n\n\n\n

Flattened-out fish-hook-shaped recovery of demand?<\/strong><\/p>\n\n\n\n

Passenger revenues collapsed by 94% to just $681 million, United Airlines disclosed in its Q2 earnings report<\/a> today. Other operating revenues plunged by 37% to $392 million, but cargo was hot, rising 36% to $402 million \u201cby serving strategic international cargo-only missions and optimizing aircraft capacity with low passenger demand.\u201d All combined, revenues collapsed by 87%.<\/p>\n\n\n\n

This has now become the serenade by airlines to investors. United follows Delta in it: Revenues have totally collapsed, and we\u2019re in an existential crisis, and we\u2019re cutting costs and capacity like maniacs, and we need to shed tens of thousands of employees, to reduce our cash burn, but we\u2019ve raised many billions of dollars from you all (thank you) and from taxpayers, and we will duly burn this cash during this crisis.<\/p>\n\n\n\n

United burned $40 million a day in Q2. It expects to reduce this cash burn to $25 million a day in Q3 \u2013 about $2.3 billion in the quarter \u2013 and reduce it further in Q4.<\/p>\n\n\n\n

United said today it has slashed operating costs by 54%\u201d compared to Q2 last year; this includes expenses for fuel, which were down 90%, aircraft maintenance down 74%, landing fees down 35%, and its largest line item, salaries down 29%.<\/p>\n\n\n\n

Those are huge cuts. Earlier in July, in a dreary assessment of the airline industry and traffic<\/a>, including a renewed decline in ticket sales starting in late June, United announced 36,000 \u201cinvoluntary furloughs\u201d on or after October 1 if it can\u2019t entice those employees to leave voluntarily beforehand.<\/p>\n\n\n\n

Despite the cost cuts, United lost $2 billion in the quarter.<\/p>\n\n\n\n

And it said that it expects its system capacity in Q3 to still be down by 65% compared to Q3 last year. And it will cancel flights and adjust capacity \u201cuntil it sees signs of a recovery in demand.\u201d<\/p>\n\n\n\n

\u2026click on the above link to read the rest of the article\u2026<\/p>\n","protected":false},"excerpt":{"rendered":"

\u201cDemand to Remain Suppressed\u201d till Vaccine\/Treatment Widely Available: United Airlines. May Not Happen till Late 2021 \u201cor Even Later\u201d: Health Care Leaders Flattened-out fish-hook-shaped recovery of demand? Passenger revenues collapsed by 94% to just $681 million, United Airlines disclosed in its Q2 earnings report today. Other operating revenues plunged by 37% to $392 million, but cargo was […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[30067,30068,30069,7119,855,4254,4255],"class_list":["post-54307","post","type-post","status-publish","format-standard","hentry","category-economics","tag-airlines-industry","tag-travel-demand","tag-travel-industry","tag-united-airlines","tag-viral-pandemic","tag-wolf-richter","tag-wolfstreet"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/54307","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=54307"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/54307\/revisions"}],"predecessor-version":[{"id":54308,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/54307\/revisions\/54308"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=54307"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=54307"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=54307"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}