Airlines Collapse Acelerates, Italy Nationalizes Alitalia

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    The Italian government has moved to take control…



    Qantas will cut international capacity by 90% through to May

    Cuts to May will ground about 150 aircraft

    Adds already announced cuts from May to September will stay in place, but my may be cut further


    Vertical Research Partners analyst Rob Stallard said in a Monday research report.

    “With the latest data showing that airlines have grounded more than 8,500 planes…we think it is likely that a large number of old planes do not return to passenger service,” “In previous downturns we have seen a spike in old aircraft retirements, and after a period of unusually low retirements in 2018-19, this could occur again.”


    Senators say U.S. airlines sitting on $10 billion owed to consumers for canceled flights

    U.S. airlines are estimated to be sitting on more than $10 billion in travel vouchers that should have been cash refunds from canceled flights, a group of senators released on Friday.

    Many U.S. airlines are cancelling between 60% and 80% of their flights, and under federal law passengers on those flights are entitled to full refunds, Senators Ed Markey, Elizabeth Warren and Richard Blumenthal said in a statement.

    “However, many airlines have been obfuscating this right by offering travel vouchers as the default option, requiring passengers to take burdensome steps to request refunds instead,” they said.

    The Democratic senators had asked Alaska Air Group Inc (ALK.N), Allegiant Air, American Airlines (AAL.O), Delta Air Lines Inc (DAL.N), Frontier Airlines, Hawaiian Airlines (HA.O), JetBlue Airways Corp (JBLU.O), Southwest Airlines Co (LUV.N), Spirit Airlines Inc (SAVE.N), Sun Country Airlines, and United Airlines (UAL.O) to each provide details on their refund policies during the pandemic.

    In the airline replies, which were reviewed by Reuters, most did not share the total value of the travel vouchers and credits they have issued during the pandemic.

    But JetBlue, which has 5.5% of the domestic market share, said it issued over $20 million per day of travel credits to consumers in the first few weeks of March.

    “Assuming a similar trend throughout the industry over the last month, this figure could mean that the airlines are sitting on more than $10 billion in customer cash,” the lawmakers said, while inviting airlines to provide more information if they dispute the figure.

    According to their findings, airlines are offering cash refunds when the company itself cancels a flight, as required by the U.S. Transportation Department, but only Allegiant and Spirit are offering refunds to passengers who voluntarily cancel their own tickets.

    “None of the biggest carriers with the most revenue, including United, American, Delta, and Southwest, offer similar refunds,” it said.

    In their replies the airlines generally said their policies are consistent with DOT guidelines.

    Sun Country, a Minnesota-based ultra low-cost carrier, said refunding all of its non-refundable tickets outside of DOT guidelines “would put the company’s future at risk.”

    Among replies by larger carriers, Delta said it had processed over 1 million refunds totaling more than $500 million in March, for passengers that had requested a cash refund for flights that Delta canceled or changed.

    American Airlines said in its reply that over 90% of the customers who were offered a refund for flights the company itself canceled chose that option over a travel voucher.

    If passengers do not specifically request a refund, they are issued a travel voucher. While many airlines have made the vouchers valid for up to two years, some airlines’ vouchers expire within one year.

    U.S. airlines are set to soon receive $25 billion in government payroll aid, much of it in the form of free cash, and can also apply for another $25 billion in government loans to help them weather the coronavirus downturn.

    “The airline industry received its $50 billion taxpayer bailout, so the least it can do is offer full refunds—without forcing customers to jump through hoops. All passengers deserve a full cash refund during this unprecedented time,” said Consumer Reports aviation adviser William McGee in a statement.

    The nonprofit organization, which said it has heard from thousands of affected passengers, launched a petitihere on Friday for airlines to refund money to all travelers who had their flights impacted by the coronavirus crisis.

    Two weeks ago, the Transportation Department reminded airlines that they are obligated to refund tickets when they cancel a flight or make a significant flight schedule change that passengers opt not to accept, but did not take any immediate action against airlines.

    The department said given the massive crisis it “will exercise its prosecutorial discretion and provide carriers an opportunity to become compliant before taking further action.”


    United Airlines $1 billion public offering stock in fresh move to COVID19 pandemic

    United Airlines Holdings on Tuesday announced a public offering to raise more than $1 billion, the first major airline to sell equity to help it survive a sharp travel downturn in the coronavirus pandemic.

    The offer of 39.25 million shares, underwritten by Morgan Stanley and Barclays, was priced at $26.50 per share, United said in a statement, a discount of 4.9% on Tuesday’s close.

    Shares in United, like other airlines, have been punished by decimated travel demand, losing 67% over the past three months as the pandemic forced lockdowns in many countries.

    In an effort to boost capital and save costs until people start flying again, U.S. airlines have grounded fleets, raised debt, cut executive salaries, asked employees to take unpaid leaves of absence and sought government aid.

    United is set to receive $5 billion from the U.S. Treasury to cover payroll through Sept. 30 and has said it expects to borrow up to about $4.5 billion from a separate government package for airlines. In exchange for part of the funds, the airline must issue warrants for the Treasury to purchase shares at its April 9 closing price of $31.50.

    The stock offering announced Tuesday includes a 30-day option for the underwriters, Morgan Stanley and Barclays, to purchase up to 3.93 million additional shares.

    In a separate statement on Tuesday, United said it reached a settlement last month with Boeing Co over damages incurred in 2019, when airlines were forced to cancel flights due to the 737 MAX grounding that followed two fatal crashes. It did not disclose any financial details.

    United on Monday said it expects to report a pre-tax loss of about $2.1 billion for the first quarter.

    United Airlines Holdings $UAL now down −$2.44 (-8.76%)
    to 25.44 after public offering to raise more than $1 billion, to help it survive the sharp travel downturn in the #coronavirus pandemic


    [color=red][size=5][b]American Airlines Group Inc down on UAL move
    10.20 USD −0.81 (7.32%)[/b][/size][/color]


    Airlines Hope Bounces Hits Wall OF reality.

    Market Summary > American Airlines Group Inc
    9.12 USD −0.53 (5.47%)
    May 13, 2:53 PM EDT
    After hitting ATL

    Market Summary > United Airlines Holdings Inc
    20.70 USD −2.06 (9.05%)
    May 13, 2:54 PM EDT

    Market Summary > Delta Air Lines, Inc.
    19.61 USD −1.42 (6.75%)
    May 13, 2:55 PM EDT

    Market Summary > JetBlue Airways Corporation
    7.97 USD −0.091 (1.13%)

    Search Results
    Finance Results
    Market Summary > Southwest Airlines Co
    24.04 USD −1.17 (-4.64%)
    May 13, 2:56 PM EDT

    Market Summary > Alaska Air Group, Inc.
    25.49 USD −1.36 (5.07%)
    May 13, 2:57 PM EDT

    Market Summary > Hawaiian Holdings, Inc.
    11.48 USD −0.12 (1.03%)
    May 13, 2:57 PM EDT

    Helmholtz Watson

    This is a loss of of 157 million of passengers since March 1st..

    Via .Remi Tetot @TetotRemi

    Meanwhile eternal hope for airlines today

    United Airlines Holdings Inc
    29.54 USD +4.14 (16.30%)

    American Airlines Group Inc
    11.14 USD +1.44 (14.85%)


    Airlines lower again on #COVID19

    American Airlines $AAL lowest since early June.
    Delta Air Lines $DAL below 50dma to 10-day low.
    United Airlines $UAL back to 50dma
    Southwest Air $LUV near 50dma
    JetBlue Airways $JBLU below 50 dma 7-day low

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