Coronavirus hits airlines: American suspends China flights until fall, CEOs take pay cuts
Trump administration proposes payroll tax cut to combat economic impact of coronavirus
FOX Business’ Blake Burman on the Trump administration’s efforts to combat the economic effect of coronavirus.
The deadly coronavirus outbreak is hitting the airline industry — and its CEOs — hard.
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American Airlines said Tuesday it will suspend flights to China and Hong Kong until Oct. 24.
The company's leaders are taking pay cuts because of the downturn.
United Airlines' CEO Oscar Munoz and President Scott Kirby will give up their base salaries through June 30, the company said in an SEC filing.
Southwest Airlines CEO Gary Kelly told employees on Monday that he'll take a 10 percent pay cut because of reduced bookings, The Wall Street Journal reported.
|AAL||AMERICAN AIRLINES GROUP INC.||15.43||+0.68||+4.61%|
|UAL||UNITED AIRLINES HLDG.||49.60||+2.82||+6.03%|
|DAL||DELTA AIR LINES INC.||43.42||-0.10||-0.23%|
|LUV||SOUTHWEST AIRLINES CO.||43.81||+0.19||+0.44%|
|SAVE||SPIRIT AIRLINES INC.||20.71||-0.69||-3.25%|
Spirit Airlines and United said that their 2020 guidance no longer stands because of virus uncertainty. United said it raised an incremental $2 billion in new liquidity from a group of banks as the company and its competitors estimate falling revenues.
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"The velocity and the severity of the decline is breathtaking," Southwest's Kelly said according to the Journal. "There is no question this is a severe recession for our industry and for us, and it's a financial crisis."
Kelly had a base salary of $750,000 in 2018 but total compensation of more than $7.6 million.