Europe travel ban could hurt US airlines even more during pandemic - Business Insider

will likely come as a disappointment to quarantine-weary globetrotters looking to get back out into the world.

Allegiant Air, similarly, flies mostly within the United States. It operates with a point-to-point model, eschewing hubs, which allows it to adjust quickly as demand pops up in new places during the recovery — or as demand drops for certain areas due to spikes in cases.Each of the airlines operates a substantial domestic network, and have been adjusting their plans and business models to focus on maximizing those.

Based on rising domestic demand, American will operate 55% of its domestic capacity in July, compared to the same month in 2019. In April, the airline flew about 20% of its domestic capacity, and in May, it flew about 25%, according to Raja. Additionally, upsells and other ancillary fees generate significant revenue for airlines, and more opportunities exist on the longer international flights, which are usually flown with bigger planes. For instance,for premium products and upgrades in 2019, while the big three made almost $3.4 billion in checked bag fees in 2019, according to the Bureau of Transportation Statistics.

Other than a relative handful of wealthy leisure travelers and honeymooners splurging on a special treat, the majority of business class passengers are business travelers, whose companies are willing to pay for them to be more comfortable and better rested after a flight. It's an effort to keep worker productivity high.

If a multitude of travel bans happen alongside an apparent hestitation within companies over employee travel, this crucial segment for American, Delta, and United could take even longer to recover.

And your point is?

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