Most Airlines Could Be Bankrupt By May
INDUSTRY OBSERVERS PREDICT MANY MAJOR AIRLINES MAY BE BANKRUPT BY THE END OF MAY DUE TO COVID-19
(CNN) – The coronavirus is making the airline industry so sick, many major carriers may go bankrupt.
One consultancy is projecting most airlines in the world will be out of money by the end of May.
Europe’s biggest low-cost carrier, Ryanair, said on Monday it will ground most of its fleet over the next seven to 10 days.
That follows the biggest cutback by Delta in its history and United Airlines cut its capacity in half.
The three major airline alliances joined forces Monday calling for government help.
OneWorld, SkyTeam, and Star Alliance together represent nearly 60 airlines.
One of their demands is asking airport operators to waive fees like landing charges.
However, airport operators are also losing revenue from the downturn in air traffic and may need help themselves.
Even with government bail-outs, industry observers believe some airlines will continue to face financial problems.
Airlines plan to request a $50 billion aid package from the U.S. government.
That’s according to an industry group.