Business News of Friday, 3 April 2020
Source: iata.org
IATA: Airlines facing rapid cash burn
The fall in demand would be the deepest in the second quarter, with a 71 percent drop
The International Air Transport Association (IATA) published new analysis showing that airlines may burn through US$61 billion of their cash reserves during the second quarter ending 30 June 2020, while posting a quarterly net loss of US$39 billion.
This analysis is based on the impact assessment IATA released last week, under a scenario in which severe travel restrictions last for three months.
In this scenario, full-year demand falls by 38 percent and full-year passenger revenues drop by US$252 billion compared to 2019.
The fall in demand would be the deepest in the second quarter, with a 71 percent drop.
