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IPFS News Link • Transportation: Air Travel

Boeing CEO Predicts A US Airline Will "Most Likely" Go Bankrupt This Year

• Zero Hedge - Tyler Durden

Boeing's CEO, flush with fresh capital (read: debt) for his business, is now starting to make the rounds on the company's redemption tour. The coronavirus put the 737 MAX scandal in the proverbial rear-view mirror and Boeing was able to raise $25 billion to keep itself in business with the U.S. economy at a total shutdown.

As part of CEO Dave Calhoun's PR tour, he participated in an interview with NBC that will be aired tonight. In it, he predicts that a major U.S. airline will fold as a result of the economic pressure. 

"The recovery is going to be slow, with air traffic languishing at depressed levels for months," Calhoun predicted, according to Bloomberg. When asked if a major airline would fold, he replied "Yes, most likely."

He continued: "Something will happen when September comes around. Traffic levels will not be back to 100%. They won't even be back to 25%. Maybe by the end of the year we approach 50%. So there will definitely be adjustments that have to be made on the part of the airlines."