Question

In: Operations Management

what impact does COVID-19 have on the operations of the Airlines Industry especially American Airlines?

what impact does COVID-19 have on the operations of the Airlines Industry especially American Airlines?

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Expert Solution

Ans:

Impact of COVID-19 on Operations of Airlines Industry (American Airlines):

  • As COVID-19 Pandemic increasing day by day and in different countries it has a major impact on operations of airlines industry as many counties have imposed travel restrictions because of which aviation industry is facing period of Economic downfall. In case of American airlines, we know that USA is the most affected country by COVID-19 with more than six lakh positive cases, the American government have taken steps to stop the airlines incoming from many countries because of which American airlines is facing some losses.
  • American airlines are the most preferred airlines mainly by the Americans and because of COVID-19 they are facing problem of lack of passengers as people avoid traveling in this Pandemic.
  • Due to COVID-19 impact on operation of airlines industry traveling on American airlines, the number of actual operations of American airlines are much less than the number of Originally planned flights and there is increase in number of cancellations.
  • American airlines are in operation but these flights are flying with more unoccupied seats means there is low demand.
  • American airlines operate between many countries and because of different rules imposed by different countries due to COVID-19 American airlines cannot function in all countries.
  • American airlines have to announce  changes to there schedule in response to customer demand to COVID-19.
  • American airlines are famous for there business class and first class comfort and because of COVID-19 there is decrease in demand of these luxurious classes.

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