IATA: Global Airlines Running out of Cash, Need Gov’t Support

LONDON (Reuters) -
Air planes of German carrier Lufthansa are parked at the airport as air traffic is affected by the spread of COVID-19 in Frankfurt, Germany, Monday. (Reuters/Kai Pfaffenbach)

Swift government action is needed to help global airlines that are in a desperate situation and running out of cash, the International Air Transport Association warned on a media call on Tuesday.

“If we want to maintain a strong airline sector able to cope with this difficult crisis and provide the resources to ensure the recovery will happen in due time, we need governments to act strongly and quickly,” IATA chief Alexandre de Juniac said.

IATA chief economist Brian Pearce added that cash was running out for many airlines and that 75% of them have less than 3 months of non-avoidable fixed costs.