United Airlines said on Tuesday that it was cutting back on the August flight schedule it announced just last week because travel demand was sliding again as coronavirus cases surged across much of the country.
United management told employees this week that it expected to fly about 35 percent as many flights next month as it did last August, down from the 40 percent it announced a week ago, the airline said in a securities filing released after the market close.
The airline said its flight schedule for the rest of the year was likely to look much like its reconfigured August plan because the recovery would remain choppy. The airline does not expect demand to recover fully until a “widely accepted” treatment or vaccine for the virus is available. United had operated about 12 percent as many flights in June as it did last year and expects to operate about 25 percent as many flights in July compared with the same month last year.
Demand for flights started to fall as the recent increase in cases nationwide — and the associated travel and quarantine restrictions — made flying less appealing, United said. Bookings for upcoming flights at the airline’s Newark hub, for example, had started to recover in the first half of June only to reverse course after Connecticut, New Jersey and New York, said on June 24 they would require travelers visiting from states with rising infection rates to quarantine for 14 days.
The airline also said that it planned to send out legally required notices to workers by mid-July warning of possible layoffs once federal aid to the aviation industry expires at the end of September. Those affected could be notified as soon as next month, United said. — Niraj Chokshi
The Federal Reserve’s top bank regulator warned that the economic outlook remains uncertain and that the financial sector may face more pain as the pandemic wears on, leaving some borrowers short on cash to pay their bills.
“The next phase will inevitably involve an increase in nonperforming loans and provisions as demand falls and some borrowers fail,” Randal K. Quarles, the vice chair for supervision on the Federal Reserve Board of Governors, said in remarks delivered to the Exchequer Club, a Washington-based group focused on economics and finance.
“The corporate sector entered the crisis with high levels of debt and has necessarily borrowed more during the event,” Mr. Quarles said. “And many households are facing bleak…