Actionable insights straight to your inbox

logo_equities.svg

American Airlines Says Flights Will Be Booked to Full Capacity Starting July

Middle seats will no longer be kept empty, as American Airlines moves to staunch the cash bleed. Expect other airlines to follow suit.

Image: Boeing 777-300. Source: American Airlines

(Reuters) – American Airlines said on Friday that flights will be booked to full capacity starting July 1, meaning that passengers may notice more crowded flights as more people continue to travel.

Fort Worth, Texas-based American was previously limiting its seating capacity at 85% on each flight, or roughly 50% of the main cabin middle seats.

But airline executives have warned that underselling seats is not something they could do forever, particularly as they continue to bleed cash in the middle of the coronavirus pandemic.

American said it will notify customers if their flight is going to be full and allow them to move to more open flights when available.

U.S. airline passenger numbers have rebounded from lows reached in April, but executives and analysts have expressed concern about a spike in coronavirus cases in a number of U.S. states, including Texas.

Among measures to help people feel more comfortable about flying, American said it had teamed up with Vanderbilt University Medical Center to look into health and cleaning matters.

Starting June 30, it will begin asking customers during the check-in process to certify that they have been free of COVID-19 symptoms for the past 14 days.

Reporting by Sanjana Shivdas in Bengaluru and Tracy Rucinski in Chicago; Editing by Arun Koyyur and Jonathan Oatis.

_____

Source: Reuters

The implications of the dollar potentially losing its status as the global reserve are numerous. Obviously, there may be currency risks, and decreased demand for U.S. Treasuries could lead to rising interest rates. I would also expect to see massive commodity price swings.
Many of us economy-watchers have been expecting recession, though with significant differences on odds and timing. Regardless, recent banking developments just made recession more likely and may have accelerated its onset.
Many people think of position size in terms of how many shares they own of a particular stock. But it’s much smarter to think of it in terms of what percentage of your total capital is in a particular stock.