Alaska Airlines has announced a huge Q1 loss of $102 million, with its capacity plunging by 80 per cent in April.
The airline has instituted measures to help reduce its spending, lowering cash burn from $400 million per month in March, to $260 million in April. Throughout May, the airline is aiming to reach a cash burn of $200 million.
Part of this reduction in cash burn comes from enacting a “company-wide hiring freeze for all non-essential positions, reduced salaries of senior management.” The airline has also offered voluntary short-term and incentive leave programs that have been accepted by more than 5,000 employees.
The airline has also grounded 156 mainline aircraft and 13 Horizon Air aircraft.
In other airline news:
- A memo sent on 4 May to United employees by COO, Greg Hart, indicated that employees should consider the opportunity to take a “voluntary separation” from the airline. This comes as United starts to consider its future once this crisis is over.
- Delta has announced that it is capping seating at 50 per cent in its first class. There will also be a capping of 60 per cent in its main cabin, Delta Comfort +, and Delta Premium Select offerings.
- Lufthansa Technik is working on converting an Airbus A380 to freight use during the current crisis. An unidentified customer has requested that the maintenance provider helps to support the temporary conversion of an A380 for freight use.
- Thai Airways has been given a reason to hope today as it appears the government will support a bailout package for the airline. Although the plan has yet to be officially approved, the aim is to secure the airline’s future by cutting costs, restructuring, and eliminating debt.
- Ryanair has asked EU judges to cancel the Commission’s approval of a Swedish €455 million ($494 million) loan guarantee for airlines. This move could potentially slow down European governments’ efforts in providing relief to their struggling national carriers.
- China Eastern has unseated Southwest Airlines as the biggest in the world, according to analysis from aviation consultancy OAG, as Asia begins to add flights and Southwest cuts a million seats from its schedule.
- The Icelandic government is considering taking a stake in the national flag carrier Icelandair.
