COVID-19: demand grows, but US carriers still stockpiling cash

US airlines believe there are glimmers of hope during the busy summer travel season as some pent-up demand has materialised, but the encouraging signs should not be interpreted as there being a full recovery under way.

Despite some positive trends, the 2Q2020 revenue of most US airlines is projected to fall precipitously year-on-year, and will remain pressured as they continue injecting low fares into the market to stimulate demand.

There is little visibility into demand beyond Jul-2020, and the country's airlines are continuing their work to stave off cash burn and to build up liquidity. United has become the first US airline to use its loyalty programme to secure a loan, but American seems likely to follow as it works to secure a loan from the US government.