Delta Airlines lost $ 5.4 billion in 3 months, and millions of jobs are threatened with elimination around the world
The summer travel season was worse than expected for Delta Airlines, which announced that it lost $ 5.4 billion in the third quarter, as residents continued to stay home during the pandemic. According to the British newspaper Daily Mail, Delta shares fell by more than 2% in Wall Street trading two days ago. Despite Delta’s losses, the company confirmed that passengers are starting to return to travel and that reservations for Thanksgiving and Christmas are on the rise.
In the context, the CEO of the company, Ed Bastian, said: “The passenger turnout is slow, but steady .. week after week, they will return.”
“Delta plans to stop blocking middle seats in the first half of next year,” Bastian added. The move represents Delta rolling back from the policy that Delta used to distinguish itself during the pandemic from its closest peers such as American Airlines and United Airlines, who are not prevented from sitting in those seats.
The number of people screened at US airports has decreased by 65% this month, compared to last October, but this is better than the 68% decline in September, the 71% decrease in August and 96% in mid-April.
Bastian said that Delta relies heavily on business trips, which are still selling tickets at 85% lower prices than last year. He explained that a widely available vaccine is needed, a rapid coronavirus test, and a quarantine lift for travelers before corporate travel can recover.
The global aviation sector is facing a systematic collapse due to the absence of direct monetary support resulting from the Corona crisis, noting that the aviation market in the Middle East is among the markets most exposed to financial risks. Etihad CEO Alexandre de Guignac said: “Airlines around the world continue to drain money due to the disruption of air travel, which threatens to eliminate 4.8 million jobs in the aviation sector and another 41.2 million in the travel and tourism sectors.
The International Air Transport Association (IATA) stated that the Corona pandemic continues to destroy the aviation industry, and that international aviation traffic has nearly disappeared, operating at only 10% of normal pre-pandemic levels. The aviation sector has already seen massive job losses after the collapse of air travel during the global shutdown last March, and airlines in the Gulf region were among the global companies hit hard.
The International Air Transport Association and the International Airports Association stated that the collapse of travel companies and airports can be prevented through financial support and the use of travel tests as a key way to safely reopen international air travel. And that these measures will protect countries from receiving cases of HIV infection and avoid an employment crisis in the travel and tourism sector.
According to estimates by ATAG Air Transport Group, about 46 million jobs are at risk of being canceled due to the collapse of passenger traffic due to Corona, while the International Airports Association estimated that the airport sector alone would suffer a revenue decline of up to 60%, while previous estimates showed the International Air Transport Association That global airline revenues may decline by at least 50%, or $ 419 billion in 2020, compared to $ 838 billion in 2019.