In the hope that the pandemic will end and air traffic return to its previous era, American Airlines received billions in aid from Congress, in the form of grants and loans, to help it overcome the crisis.
“The current downturn in the aviation industry dwarfs past crises such as SARS and the September 11 terrorist attacks of 2001,” says Carl Moore, assistant professor at the Desaults School of Management at McGill University.
He added, “What we saw was domestic travel in the United States increased relatively, but international travel decreased dramatically, and even domestic travel was not close to what it was last year.”
The American website said that the combined third-quarter losses for airlines in the United States are estimated at 11.5 billion dollars, especially since there are 5 million air transport jobs at risk due to the epidemic, according to the estimates of the Air Transport Working Group.
Negotiations between the White House and Congress on a new aid package are continuing, with few indications that an agreement will soon be reached.
The outbreak of the coronavirus around the world led to the closure of most countries of their airports in the first months of the pandemic, which caused the demand for travel to decline sharply, and this made airlines to reduce costs, shrink jobs and request government aid to save them from bankruptcy.
Last June, the International Air Transport Association (IATA), in an official statement, estimated the losses of the aviation sector worldwide at $ 314 billion, since the outbreak of the Coronavirus pandemic, in addition to other debts estimated at $ 550 billion, resulting from the suspension of navigation. Air.
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