Global aviation is closing due to the coronavirus outbreak and travel restrictions designed to contain it, and many airlines will need government bailouts in a matter of weeks or face bankruptcy. Airlines around the world are landing planes, laying off workers and fighting to conserve cash as measures to stem the outbreak of flight bans and eliminate global demand for travel.
The world’s three largest airline alliances, Oneworld, SkyTeam and Star Alliance, urged governments to “evaluate all possible means” to help the industry. They represent more than 58 of the world’s leading operators. Some European airlines have already issued urgent appeals for help.
According to the CAPA Aviation Center, a consulting firm, most of the world’s airlines will be bankrupt in late May unless governments intervene. “Coordinated action by government and industry is needed, now, if disaster is to be avoided,” the firm said in a report released Monday. “Cash reserves are rapidly running out as fleets are ashore, and the flights there are operating much less than half,” he added.