TOPLINE
JetBlue and American Airlines announced a partnership Thursday that will allow them to sell seats on each other’s planes amid the worst crisis in the industry’s history, which is expected to cause massive losses in the second quarter.
An airline employee passes through the empty American Airlines check-in terminals at Ronald Reagan … [+]
KEY FACTS
The airlines announced a code-share agreement that would allow JetBlue customers to fly more than 60 routes operated by American Airlines and will allow American customers to fly more than 130 routes operated by JetBlue, according to the airlines, and will allow American to benefit from the JetBlue strength in the New York and Boston markets.
The goal is to increase market share for both airlines, as JetBlue CEO Joanna Geraghty said in the statement, “Pairing JetBlue’s home network with American’s international route map creates a new competitive option in the Northeast. , where customers crave an alternative to the dominant network operator, “adding,” this partnership with American is the next step in our plan to accelerate our coronavirus recovery. “
When asked if the airlines would seek a merger, a US spokeswoman sidestepped the question and told CNBC that the companies are focused on this partnership.
The news comes a day after American Airlines wrote a memo warning 25,000 front-line employees that they could be laid off in the fall; the airline previously reduced 30% of its corporate staff.
American Airlines’ revenue in June fell more than 80% compared to the previous year.
Rep. Peter DeFazio, who chairs the House Infrastructure and Transportation Committee, and other Democrats sent a letter to colleagues this week to support the push by airline unions for a new round of government bailouts to keep the Employed Workers: In March, Congress approved $ 32 billion for airlines and contractors in exchange for companies that maintain employed workers through September 30.
key background
The demand for air travel has decreased significantly due to the pandemic. So far this month, 9,998,015 people have traveled compared to 37,625,367 during the same period last year, according to TSA data, a decrease of more than 73%.
crucial date
The letter signed by DeFazio and other lawmakers said “with the current resurgence of COVID-19 in several states across the country and a virus vaccine still to be developed, passenger demand for air travel will not rebound before” June 30. September and “hundreds of thousands of airline workers can be fired or suspended starting October 1.”
Big number
1,933,278. 1,933,278 fewer people flew on Wednesday compared to a year ago, according to TSA data.
tangent
In February, American Airlines announced that it expanded its national codeshare agreement with Alaska Airlines to include international travel.
