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 International Air Transport Association (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, chief executive officer of United Airlines Holdings Inc. “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.”