With government leaders and public health officials urging people to stay home to slow the spread of COVID-19, it's no surprise that air travel demand has fallen off a cliff in recent weeks. On Wednesday, the TSA screened almost 90% fewer air travelers than it did on the comparable day in 2019. Just two weeks earlier, TSA passenger throughput was down a little less than 20% year over year.
Between this stunning plunge in air traffic and an equally sharp drop in booking activity, airlines have started burning cash at a rapid rate. Those with stronger balance sheets are better positioned to survive the current crisis without suffering permanent damage. But the need to dramatically reduce near-term capacity in response to virtually nonexistent demand is universal.
As a result, all major airlines are implementing unprecedented short-term capacity reductions. But so far, United Airlines (NASDAQ: UAL), Delta Air Lines (NYSE: DAL), Alaska Air (NYSE: ALK), and Hawaiian Holdings (NASDAQ: HA) have announced the biggest cuts.