AAL Shares Up Nearly 11%, American Airlines Want Passengers to Wear Masks While Boarding

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by Bhushan Akolkar · 3 min read
AAL Shares Up Nearly 11%, American Airlines Want Passengers to Wear Masks While Boarding
Photo: Unsplash

As the airline industry is going through its worst period in the last several decades, all the companies are initiating necessary steps to make their passengers feel safe while traveling again. Meanwhile, American Airlines (AAL) shares are in the green.

The airline industry has been the worst hit since the coronavirus outbreak all across the globe. Over the last month, air passenger travel has gone down massively. This has severely put pressure on the industry’s earning as a hole.

All airline operators in the U.S. and across the globe are in deep red losses in 202 as business comes to a standstill. In April, the data shows that the passenger through at TSA checkpoint on the U.S. Airports has plunged by a whopping 95%.

On one hand, while the earnings are completely choked, the airlines have to continue other operations. Thus, they end up burning massive cash to the tune of $100 million on a daily basis for the largest operators. To ease this, the federal government has provided some near-term financial support.

However, it is completely unclear as to how long this situation will persist. Companies like American Airlines Group (NASDAQ: AAL) are already feeling the heat of the increasing debt burden. As a result, it has significantly increased its borrowing to keep cash burning. On the other hand, the demand recovery is almost nil and hence American Airlines could be possibly heading for bankruptcy of some debt restructuring in the near future.

Hence, one thing is clear that for a majority of airlines to survive, business conditions have to improve faster than expected.

Meanwhile, it’s worth mentioning that American Airlines (AAL) shares price is rising today. Its price is around $12.45. It means that it has gained nearly 11% during this trading session.

Airlines Create Some Mandatory Procedures for Passengers

Just like every other industry, the airline industry is looking at ways to restart the operations. With fear and panic al around, airlines are working out ways to build trust for its passengers. To ensure the safety of its passengers, airlines have gone together to form a policy of wearing face masks while traveling.

As per the Centers for Disease Control and Prevention guidelines, passengers will need to wear masks while boarding a flight. However, masks won’t be compulsory enough onboard. American Airlines said that starting Monday, passengers will get masks and hand sanitizers while boarding some flights.

Kurt Stache, American Airlines’ senior vice president of customer experience, stated:

“We are looking out for our customers’ well-being to give them peace of mind while they travel with us”.

Another airline carrier has confirmed that passengers require to wear and carry face masks while boarding. Joanna Geraghty, JetBlue’s president and chief operating officer, said:

“Wearing a face covering isn’t about protecting yourself; it’s about protecting those around you. This is the new flying etiquette. Onboard, cabin air is well circulated and cleaned through filters every few minutes, but this is a shared space where we have to be considerate of others.”

All other competitors like United Airlines Holdings Inc (NASDAQ: UAL) and Delta Air Lines, Inc. (NYSE: DAL) have initiated a similar process for their customers.

“All airlines should follow JetBlue’s lead, including its efforts to fully communicate the change before it becomes effective next week so that Flight Attendants are not put in the position of being enforcers without information and backing from the airline,” explained Sara Nelson, president of the Association of Flight Attendants.

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Bhushan Akolkar
Author: Bhushan Akolkar

Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.

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