Robert Herbst, airline analyst and founder of AirlineFinancials.com, estimates the
five US passenger airlines with European operations are collectively losing $35.8 million
in revenue per day since Friday, April 16 (losses for Thursday, April 15 and the start of
the European shut-down are estimated at $17 million).
After accounting for savings from unused fuel, landing fees not paid, lower labor costs,
less maintenance, etc. the estimated operating loss for all five airlines comes to
approximately $21.9 million per day with half that amount for Thursday.
Because Delta has the highest amount of traffic to/from the closed European airports,
they will incur the largest losses with United not far behind.
As long as European airports remain closed, AirlineFinancials.com estimates the
following daily losses for each of the US airlines.
Delta (NYSE: DAL) – $10.4 million loss in revenue with an operating loss of $6.5 million.
United (NASDAQ: UAUA) – $8.4 million loss in revenue with an operating loss of $5.2 million.
American (NYSE: AMR) – $7.6 million loss in revenue with an operating loss of $4.6 million.
Continental (NYSE: CAL) – $5.6 million loss in revenue with an operating loss of $3.4 million.
US Airways (NYSE: LCC) – $3.7 million loss in revenue with an operating loss of $2.2 million.
In addition to the above, JetBlue (NASDAQ: JBLU) is likely losing a relatively small amount of passenger
feed to/from their European partners.
# # #
Disclosure- Projections above may or may not prove to be accurate. The above opinions and comments should not be used to determine the worth of any stock or investment. At the time of writing, the author and his family did not hold stock and/or derivative positions in any of the airlines covered in this article.
Robert Herbst has been a commercial pilot since 1969. His aviation experience and financial background provides a unique analytical perspective into the airline industry.
He is the founder of: Airlinefinancials.com which provides airline industry analysis and
commentary for major US carriers.
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