Listen Now: American Airlines Announcement May End Up Grounding Them
American airlines is looking to boost business, but it could end up grounded.
Since the pandemic began airlines have lost millions of dollars to canceled trips and empty flights. Now, things are slowly starting to pick up and airlines are looking for ways to make people comfortable in the friendly skies.
Unfortunately, American’s recent announcement might be doing more harm than good. The company said it would no longer block middle seats or limit capacity on planes. Now, flights are being booked with the option of filling up without any social distancing measures.
Experts say this is simple economics. Most carriers only break even if the plane hits seventy five percent capacity. If every middle seat on a typical plane is blocked it can only operate at sixty-six percent.
American Airlines says it will continue to clean and disinfect but that might not be enough for customers. So far, reaction has not been good, with travelers accusing the airline of making money at the expense of their health.
And with other airlines maintaining empty middle seats they could fly away with the competition.
CBS News Radio national business journalist Brian Banmiller has spent more than 40 years in the news industry, covering business, politics and the economy on television, radio and in print. Currently, his “Banmiller on Business” reports are delivered to an audience of millions nationwide.
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