U.S. Airline Booked Revenue Down 80% Amidst Coronavirus Pandemic

When third-quarter results are tallied, airlines in the United States will report that net booked revenue is down by 80% year over year and that they are collectively burning over $5 billion per month, according to figures released by Airlines for America, an industry trade group representing major U.S. carriers.

While more people are flying today than at the height of the coronavirus pandemic, the recovery that had been anticipated in the spring failed to materialize and tens of thousands of airline employees will be laid off later this week as a result.

Of equal concern is the fact that passenger traffic is down 68% year over year. Broken down, domestic traffic is down 66% while international traffic is down 84%. Meanwhile, one-third of the industry’s aircraft have been grounded.

The airline industry has never seen a downturn such as this, not even after the Great Recession at the end of the prior decade.

“At its lowest point in late April, passenger volumes were down 96% to a level not seen since before the dawn of the jet age,” Katherine Estep, a managing director at Airlines for America, told Frequent Business Traveler in an interview.

No one – least of all the airline industry – expects a swift recovery and many airline executives have mentioned a return to pre-pandemic levels not coming before 2023 or 2024.

(Photo: Accura Media Group)