Airlines hit wall of debt after COVID-19 grounding

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Airlines hit wall of debt after COVID-19 grounding
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PARIS: Their fleets grounded for months owing to the coronavirus, airlines have sought with varying degrees of success state assistance to avoid ...

PARIS: Their fleets grounded for months owing to the coronavirus, airlines have sought with varying degrees of success state assistance to avoid going under altogether.

Air France has obtained a 7 billion euro loan package and Lufthansa an overall aid package worth 9 billion euros. "Where governments have not responded fast enough or with limited funds, we have seen bankruptcies. Examples include Australia, Italy, Thailand, Turkey, and the UK," notes IATA director general Alexandre de Juniac.

"But this liquidity crisis is going to morph pretty quickly into a debt crisis and there are probably firms who won't be able to come back" under their debt burden weight, he told AFP.

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