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Pages:
3 pages/≈825 words
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Style:
APA
Subject:
Business & Marketing
Type:
Essay
Language:
English (U.S.)
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Topic:

Impact Of Covid-19 On The Airline Industry Business & Marketing Essay

Essay Instructions:

The structure of sentences could be simply a little bit.

 

The covid-19 pandemic has created unprecedented challenges to major U.S. airlines. In this assignment, you are required to search and learn information trom the Internet, and write an essay about why and how the Covid-19 crisis has financially impacted the airline business, and your assessment about the future of the airline industry.
Content
In your essay, please attempt to incorporate the following issues or questions:
1. Airline industry is one of the industries that got the hardest hit by the Covid-19 crisis — why is that? Try to address the question from the perspectives like the nature of the business, cost structure of the business, demand shock, etc.
2. Try to identify a few largest passenger airlines in the U.S. Have they been hit equally when judged from stock performance? Why some have been affected more than others? Try to use their financials to justify your claims.
3. What kind of government aids have those major airlines received? Are they free or are there any provisions? I low do you think those provisions may affect airlines outlook? Why does the government particularly choose to rescue airline industry, among others, but not to rescue ever)' industry and company that was impacted?
4. Warren Buffett disclosed that his company had cleared all their airline holdings. What’s your opinion about the future of the airline industry amid the Covid-19 crisis? Do you recommend buying or holding any airline shares, and why?
Requirements
1. Your essay should be at least 3 pages long and double-spaced.
2. You should at least incorporate most of the issues or questions mentioned above in your essay.
3. Organize your essay in a coherent way. You are encouraged to organize the essay by separating it into several sections. I Iowever, you should not make it like a “Q&A” type of document.
4. Appropriately cite the information you use.
5. Submit your essay in Microsoft Word document format on Canvas.

Essay Sample Content Preview:

IMPACT OF COVID-19 ON THE AIRLINE INDUSTRY
Name
Course
Date
Impact of COVID-19 on the Airline Industry
The airline industry is one of the businesses that have been severely hit the COVID-19 pandemics. The airline industry was doing great before the outbreak, having developments like the introduction of low-fare airlines, new travel trends, leveraging technological advancements, moderation of fuel prices, and a renewed focus on important services, just to mention a few. However, the COVID-19 has retarded the airline activities internationally and in America as well. This has been caused by the decline of tours and travels both internationally and domestically. Most flights are getting cancelled and postponed across the globe to prevent the spread and transmission of the virus.
Following the precautionary measures to these disease, most countries have closed their borders and are in complete lockdown. This is inhibiting travels in and out of the countries. Several parts of the United States are in a complete lockdown together with countries like Spain, Italy, France, and others who have been severely affected by the pandemic. Flights in these countries and states have been stopped completely until further notice.
Main passenger airlines that have been hit greatly by the pandemic include the American airlines, Delta Airlines, Southwest Airlines, Frontier Airlines, Alaska Airlines, and United Airlines, among others. The government of United States is experiencing losses in the airline industry for the first time after a very long period. It has recorded a drop of around 90-95% in air travel due to enormous spread of the virus around the country. The US government has agreed to offer a support of $25 billion to the passenger airline companies as part of the $2.2 trillion COVID-19 aid (Rushe, 2020). This relief has been divided among the airlines based on majorly the level of losses recorded amid the Coronavirus.
Analysis of Losses and Relief on the Airlines
The American airline has recorded a loss of $2.2 billion following the stiff reduction of the business due to the coronavirus outbreak in this first quarter of the year. This can be compared to the $185 million profit they recorded in April, 2019. It also added that it is prospecting a decline of $12 billion in their operating expenses by the end of 2020 (AFP, 2020). This is because of the lowered fuel costs, reduction of services and other factors. Around 40,000 of their employees took early retirement, and others on reduced work schedules. Luckily, the airline has received a $5.8 billion support from the federal government as they purpose to reduce their costs.
Delta airline is one of biggest and most profitable airlines in the United States. Nevertheless, Delta airlines have recorded a 60.5% fall...
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