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COVID 19: United Airlines offers insight on demand patterns

Analysis

Throughout the progression of the COVID-19 pandemic in the US United has offered candid assessments of how the crisis will affect its operations, and has often modelled for a worst case scenario.

The airline has largely been slower to add capacity back into the market than its larger US airline peers, and as a rapid climb in US case counts has occurred during the last few weeks, United, American and Delta have all been forced to rein in some of their planned capacity increases for Aug-2020. United aims to tilt most of its capacity to leisure and visiting friends and relatives (VFR) markets, since corporate demand remains severely depressed.

United has also concluded that the decrease in demand will reach 50% and plateau until a vaccine is widely distributed, the timing of which is tough to determine.

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