Consolidating flights to US cities could help stem airline industry losses as coronavirus dampens demand, executives say – CNBC

Executives with U.S. airlines are anticipated to fulfill with leaders of the Transportation Department this week to discuss the state of the industry following approval of a $50 billion bailout bundle. The aid bundle requires airlines to not furlough staff members for the next six months, while likewise keeping service, to the finest of their ability, to the cities the airlines currently serve. Consolidating service to some cities under one airline company concept makes sense given the remarkable and quick drop in guest levels, with airlines filling simply 5% to 15% of the seats on their flights.

Executives with U.S. airlines are expected to meet with leaders of the Transportation Department this week to discuss the state of the industry following approval of a $50 billion bailout bundle. The aid package needs airline companies to not furlough employees for the next 6 months, while also keeping service, to the finest of their capability, to the cities the airline companies currently serve. Executives with multiple airlines, who talked on background with CNBC, stress the idea has actually not yet been formally broached with the Transportation Department. Consolidating service to some cities under one airline concept makes sense given the fast and remarkable drop in traveler levels, with airline companies filling simply 5% to 15% of the seats on their flights. No one is ready to call a bottom on need, but as Delta CEO Ed Bastian told employees Sunday, the airline company is optimistic over the long term.

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