American Airlines CEO says the coronavirus crisis is worse than 9/11 for the industry – CNBC

American Airlines CEO Doug Parker has by no plan seen the relaxation adore this, even after 9/11 when airlines had been temporarily shutdown following terrorist attacks the utilization of business airplanes.

Really, Parker says the industrial fallout from the coronavirus pandemic is far worse for the industry than the disaster airlines faced after 9/11 when airplanes had been temporarily grounded and ask lagged for more than a 12 months. With the COVID-19 outbreak that has brought world ask for flights to a shut to standstill, there is no indication of when it can perhaps well cease, he educated CNBC.

Parker is in Washington, D.C., speaking with people of the Trump administration and leaders on Capitol Hill in regards to the necessity for presidency support to reduction the airline industry from collapsing. He agreed to hunt the advice of with CNBC in regards to the train of the industry on background, asking now not to be straight quoted given ongoing discussions about a relief kit.  

The Trump administration’s newest proposal working its manner through the Congress requires the airline industry to receive $50 billion in support, including $25 billion in fast grants that airlines don’t must repay.

Parker estimates the relaxation kit, which would furthermore embody $25 billion in loans, might well well be ample money to enable U.S.-based fully airlines to retain their contemporary operations for about six months if enterprise would now not deteriorate any further. 

American, alongside with every other airline, has seen customer ask plummet within the excellent two weeks because the coronavirus has unfold in Europe and the U.S. and governments occupy educated of us to shield dwelling and shield faraway from touring. The requires elevated social distancing occupy brought on tournament organizers and firms to execute company scoot and industry conferences to boot to shutter vital tourist sights. Shoppers occupy lengthen reserving trips or canceled their plans for upcoming flights.

Parker says he has heard and seen experiences of planes flying with easiest a handful of passengers aboard.  The airline estimates most American planes are lower than half plump on domestic flights. Internationally, the planes are packed, but easiest on memoir of there are far fewer flights now when put next with March of excellent 12 months. American has minimize 75% of its worldwide potential and 20% domestically. 

— CNBC’s Meghan Reeder contributed to this text.