Airlines face desolate future as attempts to reopen crumble

Airlines have felt the pain of the coronavirus pandemic more than other companies. Almost overnight the bulk of their business ceased. But in mid-2020 there was at least hope that Covid-19 might not be as virulent as first thought; that warmer months would bring some respite; that travel corridors—agreements allowing passengers to fly between two countries without quarantine—might get people back in the air. Now, almost eight months into the pandemic, with cities reentering lockdown and a vaccine likely months away, it’s apparent there will be no quick comeback. International air traffic in July was 92% below 2019 levels, and there was little sign of improvement in August, according to the IATA. More than 400,000 airline jobs have been cut since February, according to data compiled by Bloomberg. “This is lasting longer and is deeper than most people thought,” says Scott Kirby, CEO of United. “And our view is demand is not coming back. People are not going to get back and travel like they did before until there’s a vaccine that’s been widely distributed.” BA CEO Alex Cruz says the airline is “fighting for survival.” Cathay Pacific has said it’s restructure or die. And Singapore Airlines boss Goh Choon Phong called the decision to slash 4,300 jobs—about 20% of his workforce—the “hardest and most agonizing” he’s had to make in 30 years with the company. Airlines in the U.S. are expected to lay off thousands of additional workers when the Coronavirus Aid, Relief, and Economic Security Act, or Cares Act, expires on Oct. 1. According to IATA, 25 million jobs are at risk in airlines and associated businesses such as travel and tourism. That’s more than the 22 million the ILO estimates were lost globally as a result of the 2008 financial crisis.<br/>