The following is just one story you’ll find in today’s edition of The Water Coolest. The Water Coolest is a daily business news and professional advice email newsletter geared towards bros (read: expect a hearty helping of unfiltered commentary and advice on how to suck less at work).
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After Warren Buffett announced Sunday that he eighty-sixed airlines, things went from bad to worse for our winged friends. For starters, all four major airline shares fell, likely, thanks to harsh words from the Oracle.
Look what you did!
Four major airlines saw losses of 5% or more, with American Airlines dropping 7%, Delta falling 6.4%, Southwest sinking by 5.7%, and United losing 5% on the day. Dropping and/or falling are two words you don’t want next to your airline in any capacity.
United had itself an exceptionally rough Monday, even by Monday standards. It announced that nearly one-third of its more than 12k+ pilots will be without jobs by October 1. United’s chief pilot (the actual head pilot, we didn’t know they ranked them, either) said those numbers could be even higher if summer travel doesn’t make one hell of a comeback. What’s worse? This is all happening after getting $25B in combined bailout money.
Sh*t flows down-er-uphill
It’s not just the airlines that are feeling the heat either. Somebody’s got to make all those planes that no one’s buying. *GE has entered the chat*. General Electric which makes engines for Airbus and Boeing started its week off on the wrong foot.
GE, yesterday, said that it will layoff more than 25% of its aviation workforce over the next few months. The cut of more than 13k jobs comes just a few months after the struggling conglomerate chopped 10% of its aviation workers, in March, as part of a mission to reduce more than $1B in costs from the business.
If you recall, the engine-maker last week announced its profits had fallen 40% in Q1, so it sounds like that whole cost reduction thing better happen sooner than later.
Yeah, it’s really not looking great for US airlines and their manufacturers. The good news, especially if you like endless buffets and overpriced sunscreen, is that cruises could be back soon. So some industries are willing to adapt and overcome, even if they infect the entire world in the process.
Carnival announced it would be resuming operations as early as August 1st in Florida and Texas. OK, that checks out. It’s still extending the cancellations of many of its North American and European routes. But at least they’re trying. It’s promising to see some of these corona-ravaged travel services start to see a light at the end of the tunnel.
Water Cooler Talking Point(s)
💧 “We might not be back to normal, but Midwesterners flocking to Señor Frog’s in San Juan is a good start.” (AJ, The Water Coolest HQ)
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