Alaska, United and JetBlue all performed above average, and Spirit Airlines performed worst of all. Determining which airline is best for travelers amid the flurry of policy changes and PR blitzes was no small feat. In 2020, industry revenues totaled $328 billion, around 40 percent of the previous years. But this pool of profit-generating passengers has shrunk because of the pandemic. As a result, the FAA issuedCertAlert #20-02Temporary Parking of Overflow Aircraft(PDF), for airport operators who are working with airlines on temporary parking plans for their aircraft. Many or all of the products featured here are from our partners who compensate us. Official websites use .govA .gov website belongs to an official government organization in the United States. It will take time for airlines to restore capacity, and bottlenecks such as delays in bringing aircraft back to service and crew retraining could lead to a supplydemand gap, resulting in higher short-term prices. Some carriers are highly dependent on business travelersboth those traveling in business class and those who book economy-class seats right before they need to travel. Mobile apps will be used to store travelers vaccine certificates and COVID-19 test results. Additional interim guidance for crew on passenger or cargo flights and for first responders may also be found through the CDC website for Updated Interim Guidance for Airlines and Airline Crew: Coronavirus Disease 2019 (COVID-19) andRisk Assessment and Public Health Management of Persons with Potential Coronavirus Disease 2019. The Delta CEO shared in recent testimony that over 90% of employees were vaccinated. The Points Guy, Forbes Advisor, AwardWallet, LendingTree. The same approach can also be applied to procurement (in order to manage external providers) and technology. At Frontier, your safety is our top priority. In many cases, airline rescue efforts come in the form of government bailoutswith strings attached. (Compass Airlines is the first independent feeder to announce that it will cease operations; it will do so by April 7). After all, higher vaccination rates among the airline staff should reduce the likelihood of a labor shortage and resulting flight cancellations during a surge. Then, airlines scrambled to implement health policies, like blocked middle seats, to entice passengers back to the skies. When autocomplete results are available use up and down arrows to review and enter to select. For each of these shifts, we also issue a call to action. One is an extreme version that could play out in Europe and Asia if the crisis continues for longer than expected. Some of the recommendations for airlines and airports include: The industry guidelines combine the expertise of three federal agencies, DHS, HHS, and DOT, each of which contributed specialized expertise on infectious diseases, public safety, and transportation operations into these guidelines. Finally, of course, finance teams will need to be closely involved to protect cash levels, capture revenues as soon as possible, and delay cash-outs as much as possible. Episode #81 - Public Health Emergency of International Concern, Episode #82 - Older adults and COVID-19 vaccines, Episode #83 - Minimize infection at health care facilities, Episode #86 - Microbes are becoming resistant to antibiotics. And Delta is pushing other airlines to share their internal "no fly" lists to make sure that unruly passengers can't just take their business to another airline. As a result, the industry may have to manage structural demand changes (such as the state of the economydepression, recession, and rebound) and megatrends (such as the dramatic rise in remote working, more locally oriented supply chains, and a focus on sustainability). Episode #50 - Do I still need the vaccine if I have COVID-19? BCG was the pioneer in business strategy when it was founded in 1963. The airline industry has been hit extremely hard by the COVID-19 crisiseven harder, perhaps, than by the events of 9/11 and the 2008 global financial crisis put together. The next step is to resize and restructure the operating model and organization using a zero-based approach, which can be done in a matter of weeks. Taking a bionic approach to digital transformation can lead to successful business outcomes. Episode #89 - Respiratory Disease in Children, Episode #91 - Everything you need to know about Trans fat, Episode #92 - Disability and health inequity, Unity Studies: Early Investigation Protocols, Surveillance, rapid response teams, and case investigation, Naming the coronavirus disease (COVID-19) and the virus that causes it, Risk communication and community engagement, Country-level coordination, planning, and monitoring, Critical preparedness, readiness and response actions for COVID-19, Guidance for schools, workplaces & institutions, Humanitarian operations, camps and other fragile settings, Maintaining Essential Health Services and Systems, WHO Director-Generals Special Envoys on COVID-19 Preparedness and Response, FAQs on COVID-19 Vaccine Delivery Partnership, Virus origin / Origins of the SARS-CoV-2 virus. Now, whenever you step on a United plane, you can be sure that the employees are fully vaccinated. Adnan possesses extensive experience in Travel & Transportation application development/management practices and product development. Hopefully, these were isolated events. For questions on how to stay healthy while traveling, please refer to the CDCs advice on this topic by clicking. Boston Consulting Group is an Equal Opportunity Employer. Please see the CDC website for further information. This large gap between nonstop pricing and connect pricing may need to narrow. Airlines should reevaluate the economics of their operations, especially long-haul flights. The FAA is posting extensive information about COVID-19 on its website and on social media. Relationships with IT and distribution providers could be reexplored. Although we strove to perform as objective an analysis as possible, these (and any) rankings have an element of subjectivity. We expect to see differences, in terms of duration and impact, between business and leisure travel for both short-haul and long-haul trips. Also, we have made the proactive decision to elevate the cleaning and sanitation of our aircraft beyond standard practice during this time. The Post-COVID-19 Flight Plan for Airlines, Technology, Media, and Telecommunications, The Great Reset for Revenue Management in Travel, Seven Trends That Will Reshape the Airline Industry, In Travel, Its Time to Push AI Beyond the Pilot Phase, Read more of the latest COVID-19 articles, How Travel Companies Can Emerge Stronger from COVID-19, They should start by determining the optimal size and dimensions of their networks and fleet, and they should do so within the next few weeks. COVID-19 lowers airline credit ratings and raises the cost of debt, International Air Transport Association, August 21, 2020, iata.org. This guidance, the Runway to Recovery: The United States Framework for Airlines and Airports to Mitigate the Public Health Risks of Coronavirus, lays out a framework for implementing public health measures in the aviation sector to minimize the risk of COVID-19 transmission. Jaap Bouwer is a senior expert in McKinseys Amsterdam office, Steve Saxon is a partner in the Shenzhen office, and Nina Wittkamp is a partner in the Munich office. If you already had COVID-19 within the past 90 days, see specific testing recommendations. A lock ( LockA locked padlock ) or https:// means youve safely connected to the .gov website. The U.S. Government will continually assess these measures, in close consultation with airlines and airports, as Americans begin to travel again. Also, we have made the proactive decision to elevate the cleaning and sanitation of our aircraft beyond standard practice during this time. As lease rates and OEM pricing fluctuate with supply and demand levels, inking deals during a crisis could allow carriers to enjoy a cost advantage for years to come. Coronavirus disease (COVID-19): Travel advice for the general public, Coronavirus disease (COVID-19): Staying at hotels and accommodation establishments, Coronavirus disease (COVID-19): Working in hotels and other accommodation establishments, Independent Oversight and Advisory Committee, Episode #12 - Safe celebrations during the Pandemic. faced an operational meltdown with over 2,000 flight cancellations across a three-day period. They may also need to consider the question of fairness when multiple airlines in a particular country require support. All qualified applicants will receive consideration for employment without regard to race, color, age, religion, sex, sexual orientation, gender identity / expression, national origin, protected veteran status, or any other characteristic protected under federal, state or local law, where applicable, and those with criminal histories will be considered in a manner consistent with applicable state and local laws.Pursuant to Transparency in Coverage final rules (85 FR 72158) set forth in the United States by The Departments of the Treasury, Labor, and Health and Human Services click here to access required Machine Readable Files or here to access the Federal No Surprises Bill Act Disclosure. Repaying these loans is made even harder by worsening credit ratings and higher financing costs. McKinsey_Website_Accessibility@mckinsey.com. How did we arrive at these ratings? Please email us at: A McKinsey Live event on 'Returning to corporate travel: How do we get it right? confirmed to NerdWallet that it's asking employees to submit proof of vaccination or request an accommodation by early January 2022. Though it is sufficiently dynamic to adapt to new circumstances, it offers stable guidance when it comes to fundamental, structural changes in the size and shape of an airline. In fact, aviation data provider Cirium crowned Delta the "world's best performing airline" in its 2021 On Time Performance Review. In the years before COVID-19, aircraft OEMs ramped up production in the anticipation of continued growth. Long-haul leisure usually takes more time to plan, so it is likely to rebound more slowly. In Poland, the first case of COVID-19 was reported on 4 March 2020. What You Need to Know If you plan to travel by air to the United States from China, Hong Kong, or Macau, you will need to get a COVID-19 viral test no more than 2 days before your flight. Most of the profits earned on a long-haul flight are generated by a small group of high-yielding passengers, often traveling for business. What will be the role of governments? We also expect airlines to differ within each region in terms of financial health, probability of benefiting from government support, and both willingness and ability to participate in consolidation or fragmentation. blamed high winds in Dallas for an operational meltdown that led to the cancellation of over 2,200 flights. All rights reserved. We boiled down these variables into a single 5-point rating system to determine the best airlines for flying during COVID. In some cases, this means transferring duties to adjacent facilities. The guidelines call for public health measures to be implemented at each step in the air travel process, including before, during, and after the flight to minimize the chance for transmission of the virus. 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