Share Search
Visit the Share Search
Boeing boss warns a US airline will "most likely" fold - interview
12th May 2020 11:55
(Sharecast News) - The chief executive of Boeing has warned that a major US airline will likely go under this year, after the Covid-19 pandemic led to a collapse in passenger numbers.
In an interview with NBC, previewed ahead of it being aired later on Tuesday, Dave Calhoun was asked if a major US carrier might fold because of the crisis. "Yes, most likely," he told the Today programme.
"Something will happen when September comes around. Traffic levels will not be back to 100%. They won't even be back to 25%. Maybe by the end of the year we approach 50%. So there will definitely be adjustments that have to be made on the part of the airline." He did not name any specific airlines.
The pandemic has caused demand for air travel to dry up, as consumers heed advice to stay at home and borders close, causing planes to be grounded and staff across the sector to be laid off.
Last month, the US airline industry agreed a $25bn rescue package with Washington, which will enable carriers to retain staff until the beginning of October. Concerns are growing, however, about what happens when that support ends.
The Covid-19 pandemic comes on top of an already difficult period for Boeing, which was forced to ground its 737 Max planes following two fatal crashes. Last month Calhoun told staff that the aviation industry would "take years" to return to normal. The plane manufacturer is to cut at least 10% of jobs across the company.
A Boeing spokesman said Calhoun was "speaking to the general uncertainty in the sector, not about any one particular airline", when asked about the interview.
In an interview with NBC, previewed ahead of it being aired later on Tuesday, Dave Calhoun was asked if a major US carrier might fold because of the crisis. "Yes, most likely," he told the Today programme.
"Something will happen when September comes around. Traffic levels will not be back to 100%. They won't even be back to 25%. Maybe by the end of the year we approach 50%. So there will definitely be adjustments that have to be made on the part of the airline." He did not name any specific airlines.
The pandemic has caused demand for air travel to dry up, as consumers heed advice to stay at home and borders close, causing planes to be grounded and staff across the sector to be laid off.
Last month, the US airline industry agreed a $25bn rescue package with Washington, which will enable carriers to retain staff until the beginning of October. Concerns are growing, however, about what happens when that support ends.
The Covid-19 pandemic comes on top of an already difficult period for Boeing, which was forced to ground its 737 Max planes following two fatal crashes. Last month Calhoun told staff that the aviation industry would "take years" to return to normal. The plane manufacturer is to cut at least 10% of jobs across the company.
A Boeing spokesman said Calhoun was "speaking to the general uncertainty in the sector, not about any one particular airline", when asked about the interview.