from Birch Gold Group:

Due to fears of COVID-19 and the lengthy stay-at-home orders, the commercial airline industry has taken a major hit. Airlines have started asking for bailouts, similar to what big financial companies did in 2008.

Back in April, U.S. News reported on some of the carnage at the airlines:

The number of Americans getting on airplanes has sunk to a level not seen in more than 60 years as people shelter in their homes to avoid catching or spreading the new coronavirus. The Transportation Security Administration screened 94,931 people on Wednesday, a drop of 96% from a year ago and the second straight day under 100,000.

If that weren’t bad enough, now aerospace giant Boeing is feeling the sting due to the lack of commercial travel, and discussion about the potential restructuring of their entire operation appears to have begun.

An article on Newsmax outlined some details, including the reduction in Boeing’s workforce so far, most of which happened in Washington State:

Boeing Co. said on Wednesday it was eliminating more than 12,000 U.S. jobs, including 6,770 involuntary layoffs, as the largest American planemaker restructures in the face of the coronavirus pandemic.

The same article hinted at several thousand more layoffs to come. After explaining why the layoffs were necessary in a company-wide email, Chief Executive Dave Calhoun added, “I wish there were another way.”

A piece on Barron’s detailed the financial damage at Boeing, and hinted that the lack of interest in commercial air travel may be affecting many companies:

The financial damage is easier to see in year-to-date numbers. Boeing stock is down about 60% so far in 2020. Aerospace supplier stocks that Barron’s tracks are down about 45%. Investors believe the industry will go through a prolonged period of reduced demand, which means fewer jets are needed to fly around the country and the globe.

The chart below summarizes the stock performance of four aerospace industry leaders, including Boeing. You can see clearly that things aren’t going very well:

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