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What does the airline aid package mean for travelers? Not much

March 26, 2020
4 min read
Air passengers waiting for flight at Denver International Airport
What does the airline aid package mean for travelers? Not much
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"This isn't really about consumers, as funny as that sounds."

That's how Brett Snyder, who runs The Cranky Flier blog and separate Cranky Concierge service, summed it up.

With an aid package worth $50 billion for airlines likely to be signed into law by the end of the week, TPG wanted to figure out what changes — or possibly luxuries — travelers might expect as a result of the cash infusion.

It turns out, any changes in the near term are likely to be minimal, and will probably go largely unnoticed by travelers.

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"I'd expect more flights to operate than demand would normally indicate," Snyder said in an email. "To me that's the biggest potential consumer impact."

Henry Harteveldt, a travel industry analyst and president of Atmosphere Research, agreed.

"What this means is there will be an airline industry when we come out of it. It doesn’t guarantee the survival of any particular airline. It doesn’t change the travel experience," he said.

Harteveldt also pointed out that airlines have already significantly reduced their networks and fleets, and even when the pandemic passes, the aviation landscape won't return to its pre-coronavirus peak.

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Related: Some airlines have completely suspended service during the coronavirus pandemic.

"The airlines are putting themselves into a state of semi-hibernation," he said. “When we start to get positive news about removing shelter-in-place orders, when businesses start to remove their restrictions on travel, the airlines have to start putting Humpty Dumpty back together again.”

But what the new normal looks like will largely be a factor of what level of demand exists after the pandemic.

"What will business travel look like? How soon will people start to travel again? How soon will companies start to remove restrictions on travel?” Harteveldt said. “The key to all of this will be the state of the economy and the speed of the recovery, not only of the economy, but of demand," and that's not something the current aid bill accounts for.

Airlines Park Planes
A Delta Air Lines jet taxis passes Southwest Airlines jets to be parked with a growing number of jets at Southern California Logistics Airport (SCLA) on March 24, 2020 in Victorville, California. (Photo by David McNew/Getty Images)

And, while the legislation is strong on worker protections — mandating that airlines maintain their employee rosters for a fixed period after receiving aid, for example — the bill contains no directives about things that passengers tend to focus on, like inflight service, seat pitch or ancillary fees.

"Airlines are not going to be obliged to change the fees they charge,” Harteveldt said. “It doesn’t force the airline to change the way they do business, and the airline industry fought back against government wishes to do that.”

More:Airlines, airports consolidate terminal operations as passenger traffic craters

But that doesn't mean passengers won't see some indirect benefits of the aid to airlines in the future. Of course, keeping airlines afloat to continue their operations after the crisis is a good thing for travelers, but Harteveldt also said there will likely be some great travel deals in the future, too.

“I do think there will be some great financial bargains for travelers in terms of airfares, hotel rates, packages and more," he said. “There will probably be outstanding pricing from a consumer standpoint as airlines look to get people back on airplanes," and you couldn't get those cheap fares if there were no airlines to sell them.

Featured image by Getty Images

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  • Annual Fee

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  • Recommended Credit

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Why We Chose It

There’s a lot to love about the Amex Gold. It’s a fan favorite thanks to its fantastic bonus-earning rates at restaurants worldwide and at U.S. supermarkets. If you’re hitting the skies soon, you’ll also earn bonus Membership Rewards points on travel. Paired with up to $120 in Uber Cash annually (for U.S. Uber rides or Uber Eats orders, card must be added to Uber app and you can redeem with any Amex card), up to $120 in annual dining statement credits to be used with eligible partners, an up to $84 Dunkin’ credit each year at U.S. Dunkin Donuts and an up to $100 Resy credit annually, there’s no reason that foodies shouldn’t add the Amex Gold to their wallet. These benefits alone are worth more than $400, which offsets the $325 annual fee on the Amex Gold card. Enrollment is required for select benefits. (Partner offer)

Pros

  • 4 points per dollar spent on dining at restaurants worldwide and U.S. supermarkets (on the first $50,000 in purchases per calendar year; then 1 point per dollar spent thereafter and $25,000 in purchases per calendar year; then 1 point per dollar spent thereafter, respectively)
  • 3 points per dollar spent on flights booked directly with the airline or with amextravel.com
  • Packed with credits foodies will enjoy
  • Solid welcome bonus

Cons

  • Not as useful for those living outside the U.S.
  • Some may have trouble using Uber and other dining credits
  • You may be eligible for as high as 100,000 Membership Rewards® Points after you spend $6,000 in eligible purchases on your new Card in your first 6 months of Card Membership. Welcome offers vary and you may not be eligible for an offer. Apply to know if you’re approved and find out your exact welcome offer amount – all with no credit score impact. If you’re approved and choose to accept the Card, your score may be impacted.
  • Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year.
  • Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year.
  • Earn 3X Membership Rewards® points per dollar spent on flights booked directly with airlines or on AmexTravel.com.
  • Earn 2X Membership Rewards® points per dollar spent on prepaid hotels and other eligible purchases booked on AmexTravel.com.
  • Earn 1X Membership Rewards® point per dollar spent on all other eligible purchases.
  • $120 Uber Cash on Gold: Add your Gold Card to your Uber account and get $10 in Uber Cash each month to use on orders and rides in the U.S. when you select an American Express Card for your transaction. That’s up to $120 Uber Cash annually. Plus, after using your Uber Cash, use your Card to earn 4X Membership Rewards® points for Uber Eats purchases made with restaurants or U.S. supermarkets. Point caps and terms apply.
  • $84 Dunkin' Credit: With the $84 Dunkin' Credit, you can earn up to $7 in monthly statement credits after you enroll and pay with the American Express® Gold Card at U.S. Dunkin' locations. Enrollment is required to receive this benefit.
  • $100 Resy Credit: Get up to $100 in statement credits each calendar year after you pay with the American Express® Gold Card to dine at U.S. Resy restaurants or make other eligible Resy purchases. That's up to $50 in statement credits semi-annually. Enrollment required.
  • $120 Dining Credit: Satisfy your cravings, sweet or savory, with the $120 Dining Credit. Earn up to $10 in statement credits monthly when you pay with the American Express® Gold Card at Grubhub, The Cheesecake Factory, Goldbelly, Wine.com, and Five Guys. Enrollment required.
  • Explore over 1,000 upscale hotels worldwide with The Hotel Collection and receive a $100 credit towards eligible charges* with every booking of two nights or more through AmexTravel.com. *Eligible charges vary by property.
  • No Foreign Transaction Fees.
  • Annual Fee is $325.
  • Terms Apply.