Boeing CEO predicts coronavirus pandemic will claim a major U.S. airline. He didn't name names
Dawn Gilbertson
USA TODAY
9:11 pm May 11, 2020
With
anemic passenger counts and no signs travel will
rebound quickly from the coronavirus pandemic, airlines are fighting for their financial lives.
They're looking everywhere but the couch cushions to raise badly needed cash and the threat looms of
major layoffs this fall.
Boeing CEO David Calhoun thinks one major U.S. carrier won't survive.
Calhoun, who replaced the plane maker's longtime CEO in
January in the wake of the prolonged 737 Max crisis, made the prediction to NBC "Today" co-anchor Savannah Guthrie.
Guthrie, in an interview scheduled to air on the network Tuesday, asked Calhoun if "there might be a major U.S. carrier that just has to go out of business?''
"Yes, most likely,'' Calhoun said.
He didn't name names or define "major" airline in the 22-second snippet NBC shared ahead of the full interview.
Calhoun told Guthrie passenger traffic levels will not be back to 100% by this fall, when payroll protection for employees under the CARES Act runs out. Airlines have said they will have to cut payroll costs to survive if business doesn't rebound by then.
"They won't even be back to 25 (%),'' Calhoun said. "Maybe by the end of the year we approach 50 (%). So there will definitely be adjustments that have to be made on the part of the airlines.''