Airlines need at least $250 billion to Survive Virus

The global airline industry needs government aid and bailout measures totaling between $US150 billion ($250 billion) and $US200 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 Chief Executive Officer Alexandre de Juniac said in a webcast briefing on Tuesday.

IATA, which represents 290 airlines around the world, said a March 5 estimate suggesting carriers will lose $US113 billion in revenue this year is already outdated. It didn't take account of 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.

"We are pushing hard," he said on the call. "Governments are listening."

IATA Chief Economist Brian Pearce said only about 30 airlines worldwide have reasonably healthy debt and earnings.

And even the stronger carriers probably have only enough cash to survive for a matter of months without some sort of aid, making bankruptcy a real near-term risk, he added.

Airlines require a variety of measures, ranging from fully-fledged bailouts through loans, loan guarantees, bond-market support and tax breaks, De Juniac said.

Even once the crisis has past, carriers will remain weak and governments will have to reduce the general burden on the sector, he said.

Bloomberg