Will we see a major U.S. airline file for bankruptcy?
Boeing CEO David Calhoun thinks so.
Calhoun warned Tuesday that a major U.S. airline may fail later this year as a collapse in passenger traffic continues to test the resilience of the aerospace sector amid the global coronavirus pandemic.
Speaking with NBC News in an interview that is expected to air later Tuesday, Calhoun said it was "most likely" that a U.S. carrier would fail later this autumn, given the 'adjustments' needed for the industry to cope with the crippling pandemic.
"Traffic levels will not be back to 100%. They won't even be back to 25%," Calhoun told NBC. "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."
This comes as major airlines plan job cuts for the fall, once the CARES Act terms expire.
The CARES Act provided the industry with $25 billion in coronavirus relief, although some 37,000 workers at Delta have volunteered to take unpaid leave, while United has reduced working hours for around a quarter of its 15,000 workforce.
So, what does Jim Cramer think?
Cramer called the comments "ill-advised" and said they were a great way of pushing some airlines closer to Boeing's competitor Airbus.
Watch the full video above for more.
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