Airlines need up to another $ 80 billion (RM327 billion) to survive, the head of the Industry Trade Union told a French daily on Friday, as many countries tighten restrictions to counter another wave of coronavirus infections.
“In the coming months, the industry is expected to need additional aid from 70 to 80 billion US dollars,” Alexandre de Juniac, president of the International Air Transport Association (IATA), told the newspaper La Tribune. “Otherwise, it will not survive.”
Airlines are among the sectors most affected by government measures to slow the spread of the Coronavirus, but they have also received aid estimated at $ 160 billion.
“The longer the crisis lasts, the greater the risk of bankruptcy,” Juniac was quoted as saying.
He added, “About 40 airlines are in a very difficult situation or are under bankruptcy protection or management.”
Travel restrictions imposed during the first wave of the crisis forced many airlines to halt their fleets almost entirely. Many governments intervened with various forms of aid such as loans, cash injections, and support for registered workers.