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.
What impact do lower fuel cost and other changes have
on airlines net income? American Airlines group ( AAL ), the
world's biggest Airline, has been reporting record profits in
recent quarters. United Continental Holdings and Southwest Airlines
also reported record profits. Part of what has contributed to the
record it profits has been the decline in the cost of oil. the
price of oil has fallen during 2014; we are spending much less at
the gas pump to fill...