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Airline Bailouts Leaving Carriers With High Debt Burden: IATA

May 26, 2020, 12:59 PM

About 55% of the $123 billion in government support to air industry has put more debt on carriers’ balance sheets: IATA CEO Alexandre de Juniac and Chief Economist Brian Pearce say on weekly call.

  • Only about $11b in government support has been via new equity
  • Industry debt load seen rising to $550b by the end of the year from $430b in 2019
  • Even airlines that had strong business models could become casualties of the pandemic due to increased debts
    • IATA predicts a “number of failures” if there’s no improvement in conditions during period of air-travel restarting: Pearce
    • Read more: Latam ...