COVID 19: deteriorating US conditions cloud airline recovery

Premium Analysis

Just as US airlines are experiencing some movement off the bottom in demand during the country's busy summer high season, the US is now facing a worse than anticipated economic contraction: the number of Americans seeking unemployment continues to grow and the number of COVID-19 cases is growing at an alarming rate.

Now, three states in the US Northeast have instituted quarantines on certain out-of-state travellers, Disneyland has delayed its reopening, and the US state of Texas has paused its reopening.

Before the latest onslaught of negative news there was little visibility into air travel demand beyond the summer season, and now the latest unsettling news is doing more to cloud the outlook for the remainder of 2020.

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