Airlines on the edge fear repayments
The airlines are at risk of losing everything after canceled flights and demands from millions of travelers to get money back, IATA says.
The International Aviation Authority reports on Tuesday that a number of companies will run out of funds if the flights continue to flatten out.
“The companies only have liquidity to carry on for two months on average,” says IATA chief economist Brian Pearce.
Now the airlines are preparing for another round of losses, expecting people to recover around € 35 billion in reimbursements for travel that will never be completed.
The number of flights worldwide has decreased by 70 percent compared to last year, according to IATA. In Europe, the decline is as much as 90 percent.
According to IATA, the corona pandemic has led to 2.7 million jobs related to aviation now being threatened.
In early March, IATA estimated that the airline industry could lose revenues of up to NOK 1,047 billion this year as a result of the coronavirus.
Reported by Tom Andersson Travel News Norway