IATA: AIRLINES NEED ANOTHER $80 BLN IN AID TO SURVIVE AMID NEW LOCKDOWNS

Sat 21 November 2020:

Airlines will need $70-80 billion in aid to survive the coronavirus crisis, or another half again of the amount already received from governments, their global industry body warned, as many countries tighten restrictions to confront another wave of coronavirus infections.

“For the coming months the industry is estimated to need $70-$80 billion in additional aid,” the head of the International Air Transport Association (IATA) Alexandre de Juniac told La Tribune. “Otherwise they won’t survive.”

Airlines are one of the sectors worst hit by measures adopted by governments to slow the spread of the coronavirus, but they have also received an estimated $160 billion in aid.

“The longer the crisis lasts, the greater the risk for bankruptcies,” de Juniac was quoted as saying by the daily.

“Nearly 40” airlines “are in a very difficult situation or are under bankruptcy protection or administration,” he added.

Travel restrictions imposed during the first wave of the crisis forced many airlines to ground almost their entire fleets. Many governments stepped in with various forms of aid such as loans, cash injections, and support for furloughed workers.

IATA has predicted a painfully slow recovery with a return to pre-crisis traffic levels only in 2024 and passenger numbers still down 30% next year.

That too could prove optimistic, De Juniac warned. “We estimate that air traffic will be at 33% of its 2019 level at the end of 2020 and then, we hope, 50-60% at the end of 2021.”

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