United warned in a filing on Thursday morning that it had reduced bookings and seen an increase in canceled reservations, which has led to an increase in infection rates across the country.
The airline will also have to make more timetables in the fourth quarter than planned a year ago.
The number of US Covid-19 cases is growing rapidly, reaching record levels in the past week. As the death toll in the U.S. exceeds 7,000,000, it was reported on Wednesday that U.S. There were 170,000 new infections of Covid-1. Many states are imposing restrictions on commercial and social activities.
United was the American airline that cut its domestic schedule in March when the initial U.S. The outbreak began on air travel. Soon, all the airports claimed the amount of air travel sinking with deep cuts to the schedule.
When the epidemic hit earlier this year, airlines usually defer changeable charging fees. In September they dropped the conversion fee permanently. Which made it much easier for passengers to cancel reservations, but usually customers only get credit when they cancel travel plans, not refunds.
United’s two biggest rivals have also reported a slowdown in bookings recently, though not to mention the cancellation of reservations in both.
Vasu Raja, Chief Revenue Officer American Airlines (AL)The world’s largest carrier told investors at a conference on Tuesday that their airline had also “definitely seen flattening in ticket sales.”
“Nowhere near the kind of negative impact we’ve seen in July or the March-April period,” he said. “But now we’re in a place where we can expect it and plan a network … around it. We’ve seen it.”
The American said it is still adding flights next week for Thanksgiving, increasing from about .00,000 per day to over 1,000,000.
Southwest (L.U.V.) He pointed to the guidance last week in which he said he has experienced a decline in revenue improvement in recent weeks between November and December.
“It’s not clear if there’s a softening in booking trends … the recent addition to the Covid-19 cases is a direct result,” the airline said at the time. “In this way, the company remains cautious in this uncertain income environment.”
Delta (DAL), Another major U.S. airline, did not immediately respond to questions about United’s filing.
Shares of United (UAL) The afternoon was down about 2% Trade, while other airline stocks changed slightly.
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