Global airline industry needs aid of up to US$200 billion to survive coronavirus pandemic, says IATA

The global airline industry needs government aid and bailout measures totalling between US$150 billion and US$200 billion if it’s to survive the coronavirus crisis, according to the International Air Transport Association.

Even then, the pandemic is likely to reshape the industry, with many airlines failing, others consolidating and entirely new groupings emerging, IATA CEO Alexandre de Juniac said in a webcast briefing on Tuesday.

The warning came as governments around the world indicated that they’re actively exploring proposals to save airlines, with Italy’s plans to re-nationalise Alitalia among the most advanced. Airbus and Boeing are also in talks about state support, with the European company announcing a temporary shutdown to comply with tighter hygiene requirements.

IATA, which represents 290 airlines around the world, said a March 5 estimate suggesting carriers will lose US$113 billion in revenue this year is already outdated. It didn’t take into account the border closures and flight bans that have been enforced around the world as the virus has spread.

At the same time, De Juniac said he was “pretty satisfied” with the response of governments to the industry’s pleas for help. He praised state intervention in support of airlines in Singapore, South Korea and China, and said packages being put together in the US, UK and European Union appear positive.