Airlines beg for rescue as coronavirus hit soars to US$ 250 billion

IATA chief economist Brian Pearce said European airlines were most at risk, with airline capacity in the region forecast to be down 90% for the second quarter of 2020.

Analysts have said indebted Norwegian Air is one of the most vulnerable, but it was helped by a small government cash injection on Tuesday as it began talks with creditors worried about its liquidity.

IATA broadly stuck to a forecast last week that government bailouts worth about US$ 200 billion were needed, even as it more than doubled its estimate for 2020 revenue losses to US$ 250 billion, compared with US$ 113 billion forecast 2-1/2 weeks ago. That would represent a 44% decline on 2019.

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De Juniac, a former Air France-KLM boss, brushed aside a growing debate about whether relief for airlines should come with strings attached, such as new commitments on climate goals.
But he said the airline industry would continue efforts already under way to curb emissions once the crisis recedes.

"We are in an emergency situation. It's no time for requirements. I'm sorry for that. We need a full speed massive rescue package now," de Juniac said.
With airlines at the front of bailout queues, green advocates fear climate action may lose momentum.

Separately, Britain told airlines it would consider stepping in to help them survive only after they have explored the possibility of raising capital from other sources.