United Airlines Holdings, Inc. (UAL) was down -2.46 percent to $42.97. Although the stimulus plan of $900 billion introduced by the U.S. Congress on Monday, included $15 billion in assistance to the airline industry, the carrier told its workers that any recall of staff resulting from this aid will likely be “temporary,” since the demand for passengers is unlikely to change in the coming months. “We do not expect consumer demand to change much by the end of the first quarter of 2021. United Airlines has been realistic about its prospects throughout the crisis, and we have tried to give you an honest assessment at every step. The truth is that we don’t see anything in the data that shows a huge difference in bookings over the next few months. That’s why we think the recall will be temporary.”
U.S. Congress passed a $25 billion federal assistance package in March to help air jobs by the end of September. Because of the lack of consensus among parliamentarians on a comprehensive recovery plan, it was not renewed. United Airlines was forced to slash more than 13,000 jobs after the expiry of these subsidies.
Alaska Air Group, Inc. (ALK) was stable at +0.26 percent to $50.35 while The Boeing Company (BA) was also stable but a bit less with -0.24 percent at $218.78. Alaska Airlines is optimistic about future of Boeing’s MAX. The Seattle-based firm will be purchasing 23 new 737-9s, taking the total number of MAX or optional units to 120. With this deal, once it recovers the last A320s recovered when it purchased Virgin America four years ago, the fifth largest U.S. carrier will regain a fleet made up entirely of Boeing aircraft. The airline will also, as already announced, lease 13 MAXs from Air Lease. This deal is really good news for Boeing since, after the aircraft was approved to return to air a few weeks ago, it is the first U.S. order for 737 MAX.