Delta Air Lines
March 10 2020 - Delta Air Lines is cutting its international flight capacity by 20 to 25 percent and its domestic U.S. flight capacity by 10 to 15 percent as coronavirus fears keep travelers at home.
With bookings falling steeply, Delta President Glen Hauenstein said at the JPMorgan conference held on Tuesday March 10 that he expects the airline’s planes will soon be only 65% to 70% full, down from 77% in the first week of March and off roughly 20 percentage points from the same time last year.
To align capacity with expected demand, Delta is reducing system capacity by 15 points versus its plan, with international capacity reduced by 20-25 percent, and domestic capacity reduced by 10-15 percent. The company will continue to make adjustments to planned capacity as demand trends change.
By region, reductions include:
March 10 2020: - American Airlines announced it will reduce international capacity for the upcoming peak summer travel season by 10%, including a 55% reduction in trans-Pacific capacity. American will reduce domestic capacity in April by 7.5% from current plans.
Full Press Release: -
FORT WORTH, Texas, March 10, 2020 (GLOBE NEWSWIRE) -- American Airlines Group Inc. (NASDAQ: AAL) today announced additional adjustments to its schedule in response to decreased travel demand due to coronavirus (COVID-19). The company plans to:
Reduce international capacity for the summer peak by 10% versus the previous selling schedule, including a 55% reduction in trans-Pacific capacity.
Reduce domestic capacity in April by 7.5% versus the current schedule.
New schedule changes include:
These capacity reductions assume no slot waivers are in place. At airports where demand exceeds airfield and/or terminal capacity, access is governed by slots that grant airlines permission to take off and land at specific times. Given the drop in demand related to COVID-19, American has requested temporary relief from this usage requirement – otherwise known as requesting a slot waiver – to better align capacity with demand without the risk of losing valuable takeoff and landing slots for the future. American will continue to review its network and make adjustments as needed if waivers are granted.
March 4 2020 - United announced that starting in April it will reduce passenger-carrying capacity 20% on international routes and 10% in the U.S. — the first airline to cut domestic flying. United officials said they will temporarily ground an unspecified number of planes.
The deepest reductions in flying will be between the U.S. and Asia — a cut of 50%. United, like Delta and American, suspended service to mainland China and Hong Kong last month. United will also chop 10% from its schedule between the U.S. and Europe, 5% to Latin America.
United officials said they don’t plan to abandon service to any U.S. cities, but they will eliminate some routes as part of the 10% cut in the April schedule for domestic service. For example, the airline will stop flying from Chicago to Eugene, Oregon, but it will continue to serve Eugene from San Francisco and Denver. It will also reduce the number of daily flights on some routes.
United’s top executives said they expect those reductions to extend into May, but they have not determined what to do after that — it will depend on bookings over the next few weeks.
On Tuesday March 10 United stated that two weeks ago it had seen no meaningful impacts on bookings outside of its Asia routes. However, the CEO Scott Kirby said that over the past “three to four days,” new domestic bookings have plunged 25%. When cancellations were added it resulted in net domestic bookings being down by 70%. United is planning on the trend to continue to worsen, he said. He continued that net bookings to Asia and Europe have fallen 100% over the same span.
On Saturday March 7, United reduced domestic capacity for April by 10% and international by 20%. In by far the most bearish speech at the conference, Kirby said he expects reductions in May of at least 20%, with “each month after at least as large or larger” until the airline sees signs that demand is returning.
March 4 2020: - JetBlue confirmed that it would take action in response to the coronavirus, including a plan to reduce capacity by an "initial" 5% "in the near term."
Jim Hepple is an Assistant Professor at the University of Aruba and is Managing Director of Tourism Analytics.