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Most Airlines To Become Bankrupt Due To Covid-19, As Travel Restrictions & Cancellations Ground Planes


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Most Airlines To Become Bankrupt Due To Covid-19, As Travel Restrictions & Cancellations Ground Planes

source: https://mustsharenews.com/airlines-bankrupted-covid-19/

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Aviation Consultancy Says Most Airlines To Be Bankrupt By End-May Unless Govts, Industries Help Them

Among the range of businesses that have been affected by the Covid-19, airlines have probably been the worst hit.

The increasingly severe travel advisories and restrictions that have been implemented by countries worldwide have caused airlines to cancel a massive amount of flights. That, added to the flight cancellations by customers, have caused what might be irreparable damage to profits.

Now, an aviation consultant has confirmed that the damages suffered by airlines would be catastrophic, saying that the pandemic will bankrupt most airlines by the end of May.

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Airline bankruptcy will happen unless action is taken

Sydney-based consultancy CAPA Centre for Aviation said in a statement on Monday (16 Mar) that unless world governments and the industry take action, most airlines worldwide will be bankrupt by the end of May, reported Bloomberg.

Flight cancellations and travel restrictions have caused many planes to be grounded, and those that a still flying are half-empty — which leads to airlines’ cash reserves being drained rapidly, CAPA said.

In fact, many airlines are probably already technically bankrupt or have breached their debt covenants in a large way, it added.

Bloomberg also quoted CAPA as saying that government and industry action was needed, or:

Airlines in dire straits, $161 billion in lost revenue predicted.

Malaysia Airlines is one of the airlines that is facing bankruptcy due to the pandemic.

Many airlines worldwide, like American Airlines and Qantas Airways, have cut their flights.

Others like Sweden’s SAS have retrenched staff.

European regional airline Flybe has already collapsed.

The International Air Transport Association has predicted that airlines could lose as much as US$113 billion (S$161 billion) in lost revenue this year.

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It’s a no-win situation

While we sympathise with the airlines, we also understand the need for travel restrictions and for people to cancel their travel plans.

It’s truly a no-win situation for all.

We hope that governments and the industry can provide much-needed help to our struggling airlines so they can stay on their feet till the pandemic is over.

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Turbocharged

Strange that so far, I have not seen any news from travel agency associations or groups saying they will bankrupt too if they get no help soon.

Travel agencies deeper pockets than airlines perhaps?

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12 minutes ago, Kangadrool said:

Anyone waiting for fire sales of planes? lol

Woah. i tot the people here buy car only? Turbine engine also can buy? 🤩

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Thai Airways already losing  $ since 2 years ago.   They have been trying hard to stay afloat.  Now with this covid-19 they lagi worse.  Sigh.....

Hope we can quickly overcome this virus and everything back to normal soon.

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28 minutes ago, Kangadrool said:

Anyone waiting for fire sales of planes? lol

Good time for billionaires to buy new / almost new planes on steep discount maybe.

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This covid-19 instead of getting better, seems like the situation in most countries are getting worst! Tourism really got hit very bad.

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33 minutes ago, Dleodleo said:

Thai Airways already losing  $ since 2 years ago.   They have been trying hard to stay afloat.  Now with this covid-19 they lagi worse.  Sigh.....

Hope we can quickly overcome this virus and everything back to normal soon.

buy airasia or MAS ?

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42 minutes ago, Icedbs said:

Strange that so far, I have not seen any news from travel agency associations or groups saying they will bankrupt too if they get no help soon.

Travel agencies deeper pockets than airlines perhaps?

it happened all year round for so many years liao.

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26 minutes ago, Hydrocarbon said:

Good time for billionaires to buy new / almost new planes on steep discount maybe.

billionaires only buy private jet, buy airbus for what? [laugh]

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Turbocharged
3 minutes ago, Jman888 said:

it happened all year round for so many years liao.

Yes, but I expect much more during  this period as they are probably the most correlated one to airlines. 

 

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53 minutes ago, Icedbs said:

Strange that so far, I have not seen any news from travel agency associations or groups saying they will bankrupt too if they get no help soon.

Travel agencies deeper pockets than airlines perhaps?

they can just close shop overnight and run away.  no problem.  many had done that. 

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47 minutes ago, Hydrocarbon said:

Good time for billionaires to buy new / almost new planes on steep discount maybe.

I think some are probably already buying those that are paid but not yet delivered to failed airline. 
 

Many rich ppl have a fleet of 737, A380, etc of private jet. Even some Singapore ultra rich has a couple of such planes 

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53 minutes ago, Hydrocarbon said:

Good time for billionaires to buy new / almost new planes on steep discount maybe.

By next week many wont be billionaires anymore 🤣🤣

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Turbocharged
1 hour ago, kobayashiGT said:

Woah. i tot the people here buy car only? Turbine engine also can buy? 🤩

The aircraft is cheap. 

It is the long term maintenance and expensive parking that kill.  Singapore has limited space.

 

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18 minutes ago, Albeniz said:

The aircraft is cheap. 

It is the long term maintenance and expensive parking that kill.  Singapore has limited space.

 

Oic. hahaha. Cause no COE right! hahah.

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34 minutes ago, Albeniz said:

The aircraft is cheap. 

It is the long term maintenance and expensive parking that kill.  Singapore has limited space.

 

I know we all pay full cash here but I never thought people here will say the aircraft is cheap...

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Turbocharged

shouldn't the airlines cost cut before asking for assistance? Lots of companies/industries are going to need help... 

 

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