Airline strategies during the pandemic: What worked?

Abstract

An examination is conducted of airline strategies during the covid-19 pandemic using data from the United States. Our findings show that airlines pursued diverse strategies in terms of route entry and retention, pricing, and load factors. At the route level, a more detailed examination is conducted of the performance of a middle-seat blocking strategy designed to increase the safety of air travel. We show that this strategy (i.e., not making middle seats available to passengers) likely resulted in revenue losses for carriers, an estimated US $3,300 per flight. This revenue loss provides an indication as to why the middle seat blocking strategy was discontinued by all US airlines despite ongoing safety concerns.