United Airlines scales back August schedule on resurgent coronavirus, travel restrictions
United Airlines is scaling back plans to fly 25,000 flights in August as the coronavirus pandemic continues to spread across the U.S.
The Chicago-based carrier now plans to fly about 35% of the what it flew a year ago in August, United disclosed in a securities filing on Tuesday. This is down five-points from the plan unveiled on July 1 to fly 40% of what it flew a year ago.
United cited the rise in COVID-19 cases across the U.S. and new travel restrictions for the roll back of its planned schedule. The cuts were first reported by Reuters.
Sign up for the free daily TPG newsletter for more airline news!
Asked about the rising number of infections and new travel restrictions during a media briefing on July 1, United's vice president of domestic network planning Ankit Gupta called the situation part of the "ebb and flow" of the coronavirus pandemic.
"We are being extremely flexible in being able to move our capacity around," he said indicating that the airline could adjust its plans if necessary.
United's decision to scale back its August plans is not a surprise. The U.S. has set new daily records for COVID-19 infections since June, especially in states in the South and West that reopened quickly from their initial coronavirus closures. Delta Air Lines CEO Ed Bastian acknowledged this in an employee town hall on June 25 where he said the carrier could trim its own August schedule.
Related: Delta likely to pull flights as number of US coronavirus cases rises
One place where United may downsize its August plans is Newark (EWR). In a presentation on July 6, the airline indicated that net bookings for travel originating or ending at the airport were down 84% year-over-year, or 11 points lower than for travel elsewhere. The drop is attributed to the mandatory 14-day quarantine in Connecticut, New Jersey and New York for travelers coming from states with rising coronavirus infections.
More Newark flights were a highlight of United's August ambitions. The carrier planned to double the number of peak day departures to roughly 200, including resuming flights to places ranging from Bozeman (BZN) to Orange Country (SNA) and Syracuse (SYR).
Those route additions from Newark are now in question though United has not indicated where it will scale back on planned flights.
Related: United doubles Newark flights, adds 9 long-haul international routes in August
United executives also indicated that the airline may hold capacity at August levels through the end of year, according to the filing. This is in line with warnings from Wall Street who have said the recovery in some leisure travel this summer is unlikely to continue into the fall when business travel typically picks up.
Most corporate flyers remain grounded as companies hold off on travel during the pandemic.
"With COVID and other airlines' expansion, I'm pretty bearish on the fall," Sun Country Airlines CEO Jude Bricker told TPG as part of the CEO chat series this week. "September is going to be rough."
Related: Sun Country fears a 'rough' September as travel uptick plateaus
Separately, United plans to begin sending notifications to staff of possible furloughs or layoffs this month. The notices, required under the federal Worker Adjustment and Retraining Notification Act or WARN Act, are a prelude to a cull in the airline's workforce in October.
Delta has sent similar notices to more than 2,500 pilots, and American Airlines is expected to send them to as many as 8,000 flight attendants. Airlines cannot let go of staff until after employment protections under the federal government's coronavirus aid package, or CARES Act, sunset on Sept. 30.
Wall Street analysts have repeatedly warned that the pandemic will force airlines to shrink their workforces. Cowen has estimated that as many as 100,000 staff could lose their jobs because of the coronavirus.
Related: United undeterred in August expansion by rising US coronavirus infections, EU ban
TPG featured card
at American Express's secure site
Terms & restrictions apply. See rates & fees.
| 3X | Earn 3X Miles on Delta purchases. |
| 1X | Earn 1X Miles on all other eligible purchases. |
Pros
- Delta SkyClub access when flying Delta
- Annual companion ticket for travel on Delta (upon renewal)
- Ability to earn MQDs through spending
- Various statement credits for eligible purchases
Cons
- Steep annual fee of $650
- Other Delta cobranded cards offer superior earning categories
- Earn 100,000 Bonus Miles after you spend $6,000 or more in purchases with your new Card within the first 6 months of Card Membership and an additional 25,000 bonus miles after you make an additional $3,000 in purchases on the Card within your first 6 months, starting from the date that your account is opened. Offer Ends 04/01/2026.
- Delta SkyMiles® Reserve American Express Card Members receive 15 Visits per Medallion® Year to the Delta Sky Club® when flying Delta and can unlock an unlimited number of Visits after spending $75,000 in purchases on your Card in a calendar year. Plus, you’ll receive four One-Time Guest Passes each Medallion Year so you can share the experience with family and friends when traveling Delta together.
- Enjoy complimentary access to The Centurion® Lounge in the U.S. and select international locations (as set forth on the Centurion Lounge Website), Sidecar by The Centurion® Lounge in the U.S. (see the Centurion Lounge Website for more information on Sidecar by The Centurion® Lounge availability), and Escape Lounges when flying on a Delta flight booked with the Delta SkyMiles® Reserve American Express Card. § To access Sidecar by The Centurion® Lounge, Card Members must arrive within 90 minutes of their departing flight (including layovers). To access The Centurion® Lounge, Card Members must arrive within 3 hours of their departing flight. Effective July 8, 2026, during a layover, Card Members must arrive within 5 hours of the connecting flight.
- Receive $2,500 Medallion® Qualification Dollars with MQD Headstart each Medallion Qualification Year and earn $1 MQD for each $10 in purchases on your Delta SkyMiles® Reserve American Express Card with MQD Boost to get closer to Status next Medallion Year.
- Enjoy a Companion Certificate on a Delta First, Delta Comfort, or Delta Main round-trip flight to select destinations each year after renewal of your Card. The Companion Certificate requires payment of government-imposed taxes and fees of between $22 and $250 (for itineraries with up to four flight segments). Baggage charges and other restrictions apply. Delta Basic experiences are not eligible for this benefit.
- $240 Resy Credit: When you use your Delta SkyMiles® Reserve American Express Card for eligible purchases with U.S. Resy restaurants, you can earn up to $20 each month in statement credits. Enrollment required.
- $120 Rideshare Credit: Earn up to $10 back in statement credits each month after you use your Delta SkyMiles® Reserve American Express Card to pay for U.S. rideshare purchases with select providers. Enrollment required.
- Delta SkyMiles® Reserve American Express Card Members get 15% off when using miles to book Award Travel on Delta flights through delta.com and the Fly Delta app. Discount not applicable to partner-operated flights or to taxes and fees.
- With your Delta SkyMiles® Reserve American Express Card, receive upgrade priority over others with the same Medallion tier, product and fare experience purchased, and Million Miler milestone when you fly with Delta.
- Earn 3X Miles on Delta purchases and earn 1X Miles on all other eligible purchases.
- No Foreign Transaction Fees. Enjoy international travel without additional fees on purchases made abroad.
- $650 Annual Fee.
- Apply with confidence. Know if you're approved for a Card with no impact to your credit score. If you're approved and you choose to accept this Card, your credit score may be impacted.
- Terms Apply.
- See Rates & Fees