With many countries enforcing lockdown and people restricted to stay inside homes, airlines around the world may go bankrupt by May this year. This is cautioned by CAPA Centre for Aviation.
CAPA believes the impact of Coronavirus will have a devastating effect on all airlines in the world. Urgent action needs to be taken in order to avoid airlines go bankrupt in a few weeks. CAPA cautioned in an official statement saying:
As the impact of the coronavirus and multiple government travel reactions sweeps through our world, many airlines have probably already been driven into technical bankruptcy, or are at least substantially in breach of debt covenants.
Further, ticket cancelations have raised because people are discouraged from international travel to stop spread the Coronavirus. CAPA statement.
Forward bookings are far outweighed by cancellations and each time there is a new government recommendation it is to discourage flying. Cash reserves are running down quickly as fleets are grounded and what flights there are operate much less than half full.
It seems like the travel industry will be the very first to suffer a massive catastrophe as repercussions of Coronavirus Pandemic