As some warn about the possibility of airline bankruptcies, consumers could face the loss of those canceled tickets
The financial horizon looks uncertain for the airline industry.
Air travel has largely ground to a halt as people have grown wary about potentially exposing themselves to coronavirus. Many airlines have resorted to flying mostly empty flights — although in some cases, passengers have complained about crowded planes, as in the case of a recent United Airlines UAL, 3.86% flight.
Carriers’ stocks have had a rollercoaster ride in recent weeks in response. Warren Buffett recently revealed that Berkshire BRK.A, 2.89% had sold off all of its holdings in the airline sector, including stock in Delta DAL, 3.22%, American Airlines AAL, 7.63% and Southwest LUV, 3.41%.
Boeing BA, 1.59% Chief Executive David Calhoun suggested that a major airline will “most likely” go under as a result of the coronavirus pandemic during a recent appearance on NBC’s “Today” show. He added that it could take three to five years for the industry to recover to the passenger levels seen before the pandemic.