US airlines caution on winter challenges as COVID-19 cases rise

Delta and Southwest on Thursday cautioned that the recent surge in COVID-19 cases may have a negative impact on travel over the winter holidays, a period the sector had hoped would see improved bookings. The United States on Wednesday reported new COVID-19 infections reached an all-time daily high for a second day in a row and the number of people hospitalized also surged to the highest ever during the pandemic. “With the US hitting a grim milestone of 10 million positive cases and outbreaks in Europe and other parts of the world, all signs point to a challenging winter ahead,” Delta CE Ed Bastian said in a memo. The US DoT said the country’s airlines carried 65% fewer passengers in September versus the same month last year, the smallest decrease since March. Airlines say travel demand in November remains down 65%. Airlines are making a renewed push for $25b in assistance after a $25b program of mostly cash grants for payroll approved by Congress in March expired on Sept. 30. American Airlines and United last month furloughed 32,000 workers. Talks between House and Senate committees overseeing airlines to hammer out language on more airline payroll assistance have resumed over the last week, but prospects for any immediate measure remain hazy. “The situation in the industry is still dire,” said Airlines for America CE Nick Calio, noting that the US industry is losing about $180m a day. He said airlines were hopeful that the current Congress would act before the end of the year.<br/>