Alaska Air Group plans to be a 35% smaller business in Oct-2020; assumes 40%-60% booking recovery by Dec-2020

    Alaska Air Group CEO Brad Tilden said the group expects to be a 35% smaller business year-on-year in Oct-2020, before then “building gradually to 20% smaller than 2019 levels by the summer of 2021” (Seeking Alpha, 23-Jul-2020). Its president Ben Minicucci said the carrier expects capacity to be down approximately 50% in 3Q2020 and approximately 35% in 4Q2020. “At these capacity levels, we are also making a planning assumption that cash bookings will recover to 40% to 60% of normal” by Dec-2020, he noted. He noted the “desire to travel is there just below the surface”, calling attention to the quick return of leisure demand in Jun-2020 as destinations reopened and “health concerns began to subside”. Mr Minicucci observed that “ongoing societal progress and cooperation through behaviours like mask wearing, better faster and more reliable testing methods and improved treatments like a vaccine” will support “continued leisure recovery”.