Ryanair reported its June results, which were a disaster in a year over year comparisons. It will be reducing fares to generate additional traffic. Passenger volume fell from 13.6 million passengers last year to 0.4 million this year, a 97% reduction. Of course, much of this is from Ireland currently being excluded from the re-opening of travel across the EU due to failures in Ireland’s tracking system for quarantines. These results are unsustainable, despite an agreement with pilots for a 4-year contract that includes a 20% reduction in salaries. The company has called for international restrictions to be removed.
GOL, in Brazil, hard hit by the virus, released its June results that were 88.6% lower than June of 2019, although it increased its departures by 100 flights, but still down 86.9% from last year. The outlook for the winter season in Brazil remains grim. The carrier has been forced to tap its loyalty program for $225 million in liquidity.
Hong Kong Express postponed its scheduled restart of services to August, citing travel restrictions in the Asia-Pacific region. Already hard hit by protest prior to the pandemic, HK Express and parent Cathay Pacific have been hard hit in late 2019 and 2020.
RAM in Morocco is laying off personnel and will sell 20 of its aircraft, including some Boeing 787s. The economic losses at RAM have become unsustainable. And here in the US, David Neelman’s startup Breeze Airways has delayed its debut into 2021 as a result of the depressed market conditions. It has 60 Airbus A220-300 on order
The pilot shortage is officially over, and pilots are now losing their jobs in the US and around the world.
As we start the 2nd half of 2020, the outlook globally remains bleak for the airline industry and those who supply it with aircraft, engines, and services.