This article is part of a series tracking the effects of the COVID-19 pandemic on major businesses, and will be updated.
The International Air Transport Association last month forecast that global passenger traffic will not return to pre-pandemic levels until 2024. That’s a year later than a previous projection, partly because the virus continues to rage in the U.S. and new cases are climbing in other countries. “Given the pandemic’s uncertainty and questionable timing coupled with the scale of demand’s return, airlines have rightfully focused on liquidity to withstand challenges for an extended duration,” he said.
That in turn led to more layoffs and other belt-tightening measures at Boeing suppliers such as Spirit AeroSystems Holdings Inc. SPR, +3.14%, makers of fuselage, wing parts and other plane parts for Boeing and Airbus SA. SpiritAero’s second-quarter revenue fell 68%. Farther down the chain, in-flight wireless internet providers Boingo Wireless Inc. WIFI, -3.43% and Gogo Inc. GOGO, -6.44% reported revenue declines of 14% and 55% for their second quarter, respectively.
A more significant concern is if and when business travel will return, and whether it will return at the same level of robust demand seen in 2019 and the beginning of 2020, Choi said. The year 2020 will go down as “the worst year in the history of aviation,” said the trade body, in sentiment that has been echoed by airline executives.
Because they want to
Capitalism and deregulation, they wanted it until they didn’t. 😜
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