TSA checkpoint numbers have remained stagnant over the past week. Foot traffic never exceeded 750k, and the weekly average was 18,839 less than it was last week (668K vs. 649k). This marks the first week that the weekly average of passenger throughput has declined in nearly 4 Months. As the rate of new COVID-19 cases continues to increase, airport foot traffic may continue to fall.
Even with the increase in COVID-19 cases, the TSA still has not restructured their safety measures since April. It seems that instead airlines are opting to invest in health precautions.
FAA traffic numbers have come in for the month of June. The month of June saw a steady increase in flights to and from Atlanta. May reported had a high of 673 daily flights, while June nearly reached 40% of pre-corona numbers at 955 daily flights. June of last year averaged 2,609 daily flights. Expect to see a decline for the month of July, if TSA checkpoint numbers are anything to go by. The ratio will not be 1-to-1 however, as airlines will likely change their schedules to match the needs of their customers.
DAL stock stayed relatively stable this week, averaging $26.33 this week. This is an $.85 decrease from last week’s average of $27.18.
Delta has stepped up its cleanliness standards, now sanitizing not only their airplanes, but also their lobbies and kiosks. They now also require masks to be worn on all flights, barring doctor approved health reasons.
In the news
Delta Turns Flight Around After Multiple Passengers Refuse to Wear Masks
According to reports, two passengers refused to wear face masks during the flight – a mandate for virtually every airline – and the plane returned to Detroit Metro Airport in suburban Romulus.
A Delta spokesperson told the MLive.com media outlet that the flight was delayed because the passengers “were non-compliant with crew instructions.” The flight did take off again and land in Atlanta after being delayed by the return to Detroit.
Southwest CEO says airline is ‘in intensive care’ but isn’t planning to lay off or furlough workers for now
Southwest Airlines CEO Gary Kelly told employees in a letter Sunday that the company would not lay off or furlough employees in October as competing airlines have announced, CNN first reported.
“Further, we have no intention of seeking furloughs, layoffs, pay rate cuts, or benefits cuts through at least the end of this year,” Kelly wrote. “We have never had any of these in our 49-year history.”
Spirit Airlines Is Betting It Will Be One Of The First Carriers To Return To Profitability
“When demand for leisure travel rebounds and stabilizes, as evidenced by our June results, our leading low-cost structure positions us well to be among the first to return to profitability.”
June was an excellent month for Spirit Airlines amid the crisis. The airline noticed a slight rebound in demand and built up its schedules. In fact, according to CEO Ted Christie, excluding $50 million in payments for the aircraft deferral agreement with Airbus and pre-delivery deposit facility extensions, Spirit reached break-even. That is a daily cash burn of $0*.
*Author’s Note: For comparison, Delta reported a daily cash burn of $27 Million last week in their Q2 Earnings call.