The sombre assessment summed up in the headline comes from CAPA – Centre for Aviation, part of the Aviation Week Network and one of the world’s most trusted sources of market intelligence for the aviation and travel industry.
CAPA argues that coordinated government and industry action is needed – now – if catastrophe is to be avoided.
CAPA’s analysis continues: “As the impact of the coronavirus and multiple government travel reactions sweep through our world, many airlines have probably already been driven into technical bankruptcy, or are at least substantially in breach of debt covenants.
“Cash reserves are running down quickly as fleets are grounded and what flights there are operate much less than half full.
“Forward bookings are far outweighed by cancellations and each time there is a new government recommendation it is to discourage flying. Demand is drying up in ways that are completely unprecedented. Normality is not yet on the horizon.”
To read the rest of CAPA’s assessment, this is the link: https://centreforaviation.com/analysis/reports/covid-19-by-the-end-of-may-most-world-airlines-will-be-bankrupt-517512
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a sobering thought – and probably 99% correct . I know of no airline that has great reserves , most are on wafer thin margins and are highly leveraged . Watch the vultures sweep in in a few months time – god help the leasing companies they will be the losers