With massive losses, what's the future of the airline industry?

PHOENIX - It’s no surprise the airline industry has seen an enormous drop in travelers as a result of COVID-19.

Sky Harbor's two biggest airlines have posted massive losses. American Airlines had a net loss of $2.2 billion dollars, while Southwest had a net loss of $94 million. Federal dollars are headed to many airlines to help them weather the storm, but it may be more serious than that.

In an interview, Boeing’s CEO said he predicts a major U.S. airline will go out of business this year. Boeing’s CEO did not specify what airline might be in the most trouble, but regardless, a major shake-up like that will have impacts, possibly resulting in more layovers and pricier tickets.

Phoenix Aviation attorney Michael Pearson doubts the forecast, but says there might be a bankruptcy protection filing. No matter what happens, changes will come for flyers.

"The bottom line is they’re going to do everything possible to consolidate routes, cutting the number of flights between cities, potentially terminating some routes if they're too competitive or won’t generate enough money to make profit," said Pearson.

A March report from Sky Harbor shows flyers were down 46%. American was averaging 252 flights a day in Phoenix, and this month, it's down to 59.

Southwest, meanwhile, dropped from 187 to 57.

A spokesperson for Sky Harbor says its position is strengthened by how they sell their gates. Airlines have to lease, so if one airline were to leave, they could quickly adjust. Embry Riddle Aeronautical University professor Ahmed Abdelghany says the demand in Phoenix wouldn’t change.

"It’s a big city, and there’s always going to be some demand, so if one airline is not able to service air, other airlines will find an opportunity for it," said Abdelghany.

A spokesperson said the airport isn’t expecting to get back to 2019 levels until 2023.