Airlines got a brief lift from holiday travel.
But with seasonal rush over, they’re back in doldrums
Over the recent holiday season, airlines — and San Antonio International Airport and other such U.S. facilities — took in more passengers than in any stretch since the pandemic began 10 months ago.
But the increase in travel isn’t expected to continue in the weeks ahead, and the temporary bump probably didn’t stem the airlines’ financial losses.
Airlines received $15 billion in federal stimulus money from Congress in late December, but the aid only lasts until March 31.
After that, airlines are hoping the distribution of coronavirus vaccines will persuade more Americans to fly.
Despite health officials’ warnings not to travel because of the spreading virus, 8,700 passengers passed through Transportation Security Administration checkpoints on Jan. 3 at the San Antonio airport, and more than 1.3 million passengers flew nationally.
Still, the numbers were down 49 percent in San Antonio, and 45 percent nationally, from a year earlier. But it was the biggest number of passengers since the pandemic began in March.
San Antonio International saw 11 other days in the last two weeks of December in which more than 7,500 passengers boarded planes per day. Nationally, more than a million passengers passed through security checkpoints on those days.
But with the holidays over and
COVID-19 cases continuing to spike, many travelers once again again staying home.
From Jan. 5 to Jan. 9, the number of departing passengers at San Antonio International and other airports were about 60 percent of last year’s total for that period.
The number of passengers could continue to drop in coming weeks.
“Some travelers want to wait it out until more people get vaccinated,” said Brian Pratte, chief air development service officer at San Antonio International Airport..
San Antonio Aviation Director Jesus Saenz Jr. remains optimistic.
“Airlines are looking to increase the number of flights and capacity as the months move forward, especially if the vaccine becomes widely distributed,” he said in a statement.
U.S. airlines lost a combined $20 billion in the second and third quarters of 2020. More losses are expected when the airlines announce fourth-quarter results this month.
Stock analysts say United, Southwest and Delta may return to profitability by this year’s second quarter as more leisure travelers come back. American Airlines might not see profits again until mid-2022, the analysts predict.
But the carriers’ earnings likely will be smaller than in 2019 — particularly for American, Delta and United because of the lack of overseas flights, said Colin Scarola, an airline analyst at market research firm CFRA.
“International travel will be a trickle in 2021,” he said.
Most international travel from the U.S. continues to be shut down due to border restrictions.
In the meantime, airlines that added extra domestic flights during the holiday season are down again to bare-bones schedules for the rest of January and February.
Dallas-based Southwest Airlines, the largest carrier at the San Antonio airport, has cut the number of flights to 16 a day from more than 30 during the holiday period.
Fort Worth-based American, the second largest airline at the airport, is flying to only three cities from San Antonio — DallasFort Worth, Charlotte and Phoenix.
American spokeswoman Andrea Koos could not say when the carrier would resume service to Chicago, New York, Los Angeles, Miami and Philadelphia.
Airlines are scheduled to operate a total of 55 daily flights a day out of San Antonio in February, down from 140 a year earlier, Pratte said.
In March, Pratte said, the number of flights is set to climb to 98 a day. However, he added: “We fully expect reductions to that.”
In a Jan. 1 letter to employees, Delta Air Lines CEO Ed Bastian predicted the first part of 2021 “will look a lot like 2020, with travel demand deeply depressed.”
“The second phase will begin only when we reach a turning point with widely available vaccinations that spur a significant return to travel, particularly business travel,” he said. “We continue to expect that we will achieve positive cash flow by the spring.”
United spokesman Jonathan Guerin said the Chicago-based airline is flying 49 percent of the schedule it maintained a year earlier. A recent spike in COVID-19 cases has caused a slight reduction in bookings, he added.
“While it will take time for the vaccine to be widely distributed, United’s confidence is even stronger in the recovery and the trajectory of the rebound in 2021 and beyond,” he said.