The sector is likely to face a cash crunch as there are new barriers to the resumption of air travel.
The second summer was lost to the plague Corona virus According to IPA Group consultation, 2020 could lead to a wave of airline bankruptcies and bankruptcy with bailouts, layoffs, delayed flight orders and cancellations.
The hope that Bloomberg has brought the World Airlines index to its highest level since the epidemic began to evaporate last week.
TUI AG, the world’s largest tour operator, has reduced its summer schedule to reflect the high season, which did not begin until July, at least two months later than usual.
A Ryanair A press conference was held to ensure that potential tourists could change flights for free and not to panic with negative headlines.
“The landscape changes overnight,” said Stuart Hatcher of the IPA. Governments are aware that postponing the reopening of travel will cause further losses to the aviation industry, but are concerned about the increase in Govt-19 cases, even if the vaccine continues, he said in an interview.
European airlines felt particularly uncertain due to the increasing number of lawsuits and new locks. Tourism-based companies, such as TUI and Ryanair, typically use summer reserves for the first three months of the year, allowing them to make money while preparing operations.
Any room for maneuver is rapidly declining. TUI, which serves German and British tourists who have been flooded in the Mediterranean during the warmer months, had enough cash flow to last “until the summer,” without further ado. IAG, the owner of British Airways, has secured a new loan at Heathrow Airport in London using its preferred take-off and landing slots.
The airline’s chief executive officer said Thursday that airlines are at risk of losing a few months if travel is to be resumed by July 1 or provide most of the annual revenue. Air France-KLM, Ben Smith.
“July is important because the third quarter is, for most European airlines, the most important quarter for survival throughout the year,” Smith told a news conference for Airlines for Europe campaign team. The group has been pushing for the speedy adoption of so-called vaccine passports and the end of isolation.
Although 45 airlines have filed for bankruptcy by 2020, many more are anticipating a revival in the leisure markets, said Hatcher of the IPA. This seems to be the case when looking at the current situation. On Thursday, the International Airport Council said global passenger traffic would be almost 50% lower than normal this year.
Largest parts of Latin America Latham Airlines, Avianca And Gropo Aeromexico, seeking protection against creditors under bankruptcy law United States Hatcher said they would look for extensions if liquidity is not restored because there is no bailout from their governments.