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Thread: American... to drastically cut down its costs

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    American... to drastically cut down its costs


    0 Not allowed! Not allowed!
    To improve the situation, American Airlines needs to drastically cut down its costs and pray that passengers will rush to buy its tickets and once again start to travel like they did a year ago. Unfortunately, that's not going to happen. While TSA reports a small increase in weekly traffic, it's still down 90% Y/Y. The consensus right now is that the air traffic for the rest of the year will be down 50% to 80% Y/Y, and it will take a couple of years, until we return to pre-COVID-19 levels in air traffic. At the same time, to break even, American Airlines load factor should be at least 70%, and the company is unlikely to achieve it in the current environment.

    If demand improves to 50% by October, AA will only required half their(13,000) active pilots.

    Demand keeps improving...
    https://www.tsa.gov/coronavirus/passenger-throughput

    That’s not the big problem...

    The BIG problem is Parker will “Never let a good crisis go to waste?”

    Bankruptcy and/or Furloughs is only a short-term hardship...that will lead to long-term gains.

    September will have the rest of this story...
    Last edited by NoOtPilot; 05-23-2020 at 10:38 PM.

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