Dire Case for Airlines Laid Out by Industry Trade Group
Photo Credit: A Norwegian Air aircraft. the airline industry is desperate for financial support. Flickr / K Bahr
Skift Take
Even the best-run airlines will eventually run out of cash if ticket sales dry up. Governments across the world are going to have to step in.
The speed at which the coronavirus outbreak is ripping through the travel and tourism industry is like nothing we’ve ever seen before. Case in point, the International Air Transport Association, which only two weeks ago said that the crisis could cost passenger airlines up to $113 billion in lost revenue, thinks we’re probably already beyond that figure, officials said on a call Tuesday.
Airlines across the world are grounding their fleets, laying off staff and drastically cutting their number of flights in a frantic bid to stay afloat. This isn't just a case of bad airlines failing, it has the potential to bring down those airlines with even strongest balance sheets, for one simple reason: cash.
Most companies that go bankrupt do so not because they aren’t profitable but becaus
