After weeks of no business for US Airlines now the people have started booking more flights than canceling their flights.
Now the airlines such as United Airlines, Delta and Southwest have started getting more bookings as compared to March and April. It is a good thing for the airline industry to get even a small amount of business than no business at all.
Southwest said that they saw a change in demand, people booking more than canceling flights, unlike March and April. There is a drop in flights by 60% to 70% and a drop of 85% to 90% in revenue as compared to last year’s May. But for June there will be a drop of 45% to 55% as compared to last year. As there are only a few flights operating than usual so the airline forecasts its sales of seats to be 25% to 30% this month.
For the month of June they expected revenue to reduce by 90% to 95%, and 5% to 10% sales on flights. But now they expect a reduction in revenue by 80% to 85% and 30% to 35% in the selling seats.
As Delta also saw some bookings coming in, CEO Paul Jacobson said, ‘they just hope that people who have booked the flights do not cancel their bookings at the eleventh hour. That’s why we cannot predict anything as yet.’
He also said that they would be operating with 100 flights from June and booking only 50% seats in first class and 40% seats in economy class to follow social distancing. However, we might need to increase our number of flights for certain routes if the demand is higher for that route.
United Airlines expects an increase in demand for the coming months for its domestic and some international flights. United predicts its bookings to be reduced by 75% than last year which is better than the reductions in the booking of May and June.