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United Airlines Cuts Capacity Under Coronavirus Uncertainty

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The sharp drop in demand due to the coronavirus outbreak continues to wreak havoc on the airline industry. In a bid to fight coronavirus-led low demand for air travel, airlines from all corners of the globe are trimming their capacity.

Evidently, American Airlines (AAL - Free Report) aims to cut 75% of its international flights to match the extremely bleak demand scenario. United Airlines (UAL - Free Report) , which has significant international exposure, recently announced further tapering of domestic and international schedules. This Zacks Rank #3 (Hold) Chicago-based carrier announced a 60% schedule reduction for April. The plan is to decrease the number of flights across the United States and Canada to the tune of 42% apart from an 85% decline in international flights.

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To tackle the weak-demand situation, low-cost carrier JetBlue Airways (JBLU - Free Report) has decided to lower capacity by at least 40% in April and May. JetBlue’s CEO Robin Hayes warned that "the writing is on the wall" that travel demand will not be restored anytime soon.

Another U.S. based carrier Delta Air Lines (DAL - Free Report) announced that it will slash overall capacity by 40% in the next few months, reflecting the widest margin in its history including 2001.

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