The CEO of United Airlines said the coronavirus outbreak has done more harm to the air travel industry than the terrorist attacks of Sep. 11, 2001.
With world leaders implementing global travel bans from regions suffering severe coronavirus outbreaks, the airline industry has seen a steep drop in ticket sales. In a Monday letter to political leaders that was first obtained by Politico, United Airlines CEO Oscar Munoz asked for help to “protect [the] livelihoods” of airline workers.
“Public health experts, who are urging people to stay home, and government officials, who are acting quickly to restrict travel, are rightly focused on containing the spread of the virus,” Munoz wrote. “We unequivocally support prudent steps like these to keep the American people safe.”
He continued, “But, these actions have also created a fast-moving, financial crisis unlike anything the US airline industry has faced before. In fact, the financial impact of this crisis on our industry is much worse than the stark downturn that we saw in the aftermath of the 9/11 attacks.”
Munoz noted that March is typically the company’s best financial month but said the virus has tanked sales. In the first two weeks of the month, the company sold 1 million fewer flights than it did in the year prior. Munoz added, “We’re also currently projecting that revenue in March will be $1.5 billion lower than last March. The bad news is that it’s getting worse.”
He called on Congress and the Treasury Department to help the airline industry pay workers until the pandemic ends. Munoz isn’t alone in calling for more assistance. Airlines for America, the leading airline trade group in the United States, asked for $50 billion in grants, loans, and tax relief from the federal government, along with $25 billion in tax breaks on fuel, tickets sold, and cargo until 2022.
Congress is still hatching out the final economic response policy for the coronavirus. President Trump has said he would protect the airline industry.
