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American Airlines confirmed Monday it is holding off on its decision to cut flights to Stillwater, Oklahoma, and Roswell, New Mexico, but warned that slumping demand in some markets is forcing the company to consider “difficult decisions to right-size our airline.” American announced last month it was planning to drop flights to 15 smaller US cities when a federal requirement to serve those communities ends. But the company said in a statement it is deferring its decision on Roswell and Stillwater while conversations are ongoing with local officials. “While our flights to Stillwater and Roswell are among those that have suffered when it comes to demand and profitability, we have been in touch with local officials, and we’re deferring our decision to suspend service to those markets as those conversations are ongoing,” the airline said. The airline blamed low demand during the coronavirus pandemic and the failure of Congress to extend the federal Payroll Support Program. Among the other cities targeted for dropping flights in October are: Del Rio, Texas; Dubuque, Iowa; Florence, South Carolina; Greenville, North Carolina; Huntington, West Virginia; Joplin, Missouri; Kalamazoo-Battle Creek, Michigan; Lake Charles, Louisiana; New Haven, Connecticut; New Windsor, New York; Sioux City, Iowa; Springfield, Illinois; and Williamsport, Pennsylvania.<br/>

Cathay Pacific is still burning through as much as HK$2b ($258m) a month and will continue to do so until the market recovers from the coronavirus crisis, the company said Monday as it reported dismal August traffic figures and reiterated the need to restructure. “We are weathering the storm for now, but the fact remains that we simply will not survive unless we adapt our airlines for the new travel market,” Chief Customer and Commercial Officer Ronald Lam said. “A restructuring will therefore be inevitable to protect the company, the Hong Kong aviation hub, and the livelihoods of as many people as possible,” Lam said. A HK$39b recapitalization plan completed last month brought the company some time, but “it is an investment that we need to repay,” he said. Cathay is undergoing a strategic review. Recommendations about the future shape and size of the airline, which includes Cathay Dragon and HK Express, are due to be presented to the board in Q4.<br/>

Cathay Pacific will inevitably cut jobs as it reshapes operations to cope with the devastating impact of the coronavirus pandemic, according to Jefferies Hong Kong. Cathay’s monthly cash burn of HK$1.5b ($194m) to HK$2b is unlikely to change until travel and quarantine restrictions ease, Jefferies analyst Andrew Lee wrote in a note dated Sept. 14. Details on the company’s restructuring are only likely to be announced in November, he added. “The new-looking CX would inevitably lead to headcount reductions,” Lee wrote, referring to the airline’s code. Cathay released August traffic figures on Monday that showed the airline and unit Cathay Dragon flew only 35,773 passengers in the month, a slump of 98.8% from a year earlier. Chief Customer and Commercial Officer Ronald Lam warned that the carrier wouldn’t survive unless it adapted to the new travel market.<br/>

Qantas Airways is considering shifting its headquarters from Sydney in an effort to cut costs as the pandemic forces it to scale down operations. The carrier on Tuesday announced a three-month review of its property footprint across the country, and said it was seeking to trim its annual A$40m ($29m) bill for rented office space. Qantas appointed Colliers International to sublease about 25,000 square meters of surplus space and invited state governments to make pitches to host a possible new base for the company. “Like most airlines, the ongoing impact of Covid means we’ll be a much smaller company for a while,” CFO Vanessa Hudson said. “Most of our activities and facilities are anchored to the airports we fly to, but anything that can reasonably move without impacting our operations or customers is on the table.” The coronavirus has smashed the airline’s international business, with overseas flights not expected to resume until the middle of next year. And with most state borders closed to guard against a flareup of the virus in Victoria, Qantas is flying just 20% of its domestic schedule. CEO Alan Joyce has embarked on a massive cost-cutting exercise, with plans to shed some 8,500 jobs. The review announced Tuesday will focus on non-aviation facilities, including its 49,000 square-meter leased head office in Mascot, Sydney, its budget carrier Jetstar’s offices in Melbourne and Qantas’s heavy-maintenance facilities in Brisbane. The lease on a 230 square-meter office in downtown Sydney that expires in October won’t be renewed.<br/>

The CE of Qatar Airways says the Australian government should be prepared to offer national carrier Qantas financial support if the coronavirus pandemic keeps borders closed and international flights grounded. Qatar CEO Akbar Al Baker warned that if there is no coronavirus vaccine, all global airlines would either fold or be nationalised in some form. "Qantas is many times larger than Virgin Australia and what happens if Qantas is in difficulties? If I was the government, I would offer assistance to Alan [Joyce] because it is such an important economic tool," he said. Qatar Airways is state owned, and Al Baker said opponents of government support needed to be realistic about the challenges airlines face and the benefits they provide. "I'm sure that the people who are complaining about the subsidy and state aid will all go to the state for money to survive, or, because an airline is such an important economic tool, some private airlines will be nationalised, again," he said. Al Baker also called on the Australian government to remove the passenger caps that have caused a backlog of nearly 20,000 Australians stranded overseas competing for limited seats on the few flights into Australia that are operating. "I would recommend to the Australian health authorities to open up the country for at least Australians to come back who are now stranded in Europe and in other places of the world by opening up quarantine centres like it is in my country," he said.<br/>