Dave Calhoun, CEO of the well-known The Boeing Company, predicted a major U.S. airline will go out of business this year due the impact of the coronavirus outbreak, and the business will not return to even 25% of its normal traffic by September.
Delta Airlines profit for 1Q20 plunged to $534 million, contrasted to a net profit of $730 million in the same period of last year. Delta’s CEO expected to fall 90% YoY in 2Q. Meanwhile, United Airlines posted a net loss of $1.7 billion in 1Q20 from a net profit of $292 million in 1Q19.
Calhoun said in NBC’s Today that the recovery in traffic will likely take three years, however, he expected that the recovery will not reach a quarter of its normal by this September.
“Traffic levels will not be back to 100%. They won’t even be back to 25% (by September),” said Calhoun.
Even without the coronavirus outbreak, Boeing has been struggling with the grounding of its 737 Max for 14 months to this point. The virus outbreak has made the situation of Boeing even worse when the airlines cannot operate their business, the aircraft sellers also cannot sell any aircraft as well.