Furloughs
#71
Gets Weekends Off
Joined APC: Nov 2016
Posts: 133
3 months operating expenses is nothing when revenue is practically zero. A bunch of that cash is in the form of loans which have to be paid back with interest. You also don’t go into bankruptcy broke, it takes money to play that game. United is being criticized for making aggressive cuts in workers hours, downgrading positions, and preparing now for a smaller company this fall. As a result, our cash burn is about half of what AA and DAL.
#72
Banned
Joined APC: Mar 2018
Posts: 1,358
Airlines are shrinking due to weakened demand, not a plan to shrink to profitability as in the past. It’s hard to pick up what isn’t there. The core of the LCC’s revenue stream is leisure travel. Not only the airlines are taking it in the teeth. Many small businesses are going months with little or no revenue as a result of various stay at home orders and social distancing policies. There will be a bunch of restaurants and other small businesses that don’t open back up. A big percentage of people are going to either be without work, or trying to recover from months of little or no income. Taking the family to Disney World isn’t going to be a very high priority for a significant percentage of the leisure market.
#73
Gets Weekends Off
Joined APC: Oct 2019
Posts: 1,281
Airlines are shrinking due to weakened demand, not a plan to shrink to profitability as in the past. It’s hard to pick up what isn’t there. The core of the LCC’s revenue stream is leisure travel. Not only the airlines are taking it in the teeth. Many small businesses are going months with little or no revenue as a result of various stay at home orders and social distancing policies. There will be a bunch of restaurants and other small businesses that don’t open back up. A big percentage of people are going to either be without work, or trying to recover from months of little or no income. Taking the family to Disney World isn’t going to be a very high priority for a significant percentage of the leisure market.
#74
Gets Weekends Off
Joined APC: Nov 2018
Posts: 121
Lol no they aren't. They are all suffering. Gary Kelly warned Southwest could be "drastically smaller" going forward.
#76
Gets Weekends Off
Joined APC: Dec 2017
Posts: 381
Read his more recent comments after amassing $15B in cash. He sounds very confident.
#77
Gets Weekends Off
Joined APC: Nov 2016
Posts: 133
#79
I’ll try to add some facts. The TSA website publishes screening numbers each day at 9 am. Lowest was about 82k in a single day and highest was 171k in a single day (if my memory serves me right). Things are improving and loads are starting to go up.
I'm actually hopeful for the next few months.
I'm actually hopeful for the next few months.
#80
Gets Weekends Off
Joined APC: Feb 2020
Posts: 140
I’ll try to add some facts. The TSA website publishes screening numbers each day at 9 am. Lowest was about 82k in a single day and highest was 171k in a single day (if my memory serves me right). Things are improving and loads are starting to go up.
I'm actually hopeful for the next few months.
I'm actually hopeful for the next few months.
Just watching the news, CA basically has accepted the fact they couldn't stay closed any longer and had their hand forced to reopen due to the people saying enough is enough and defying sit home orders.
Travel will continue to pick up in a fairly constant upwards trend is my thought. Delta and AA are planning to increase their international network from May/June onwards and SW has even launched a summer sale to encourage those with the itch to travel to get out of town, let's hope everyone is ready for a nice vacation.
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