US Airlines collectively are going through more than $10 Billion per month. Carriers are transporting less than two dozen passengers per domestic flight as passenger demands plummets, industry trade group Airlines for America said in prepared testimony ahead of a US Senate hearing on Wednesday.
With more than 3,000 aircraft, or nearly 50 per cent of the active US fleet grounded, carriers are averaging 17 passengers per domestic flight and 29 passengers per international flight.
“The US airline industry will emerge from this crisis a mere shadow of what it was just three short months ago,” the group’s chief executive, Nicholas Calio, will say, according to his prepared testimony.
Net booked passengers have fallen by nearly 100 per cent year-on-year, the testimony before the Senate Commerce Committee said. The group warned that if air carriers were to refund all tickets, including those purchased as nonrefundable or those cancelled by a passenger instead of the carrier, “this will result in negative cash balances that will lead to bankruptcy”.
Mr Calio said airlines “anticipate a long and difficult road ahead … History has shown that air transport demand has never experienced a V-shaped recovery from a downturn”.
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