An aviation group warns most of the world's airlines could be bankrupt by late May due to the coronavirus outbreak.
The Centre for Aviation said in a statement Monday the airline industry is currently facing "unprecedented" low demand due to the coronavirus and related travel restrictions. It said "many airlines have probably already been driven into technical bankruptcy," and that a coordinated effort by governments worldwide is needed to avoid "catastrophe."
The group also criticized the lack of cooperation among governments thus far, saying, "Each nation is adopting the solution that appears best suited to it, right or wrong, without consideration of its neighbors or trading partners." It urged governments to work with aviation agencies in order to ensure "a healthy post-coronavirus-war airline regime." Failing to do so, according to the center, could lead to a nationalistic system "mostly consist[ing] of airlines that are the biggest and the best-supported by their governments."
Airlines for America, a trade group representing major U.S. airlines, proposed a series of federal assistance measures on Monday — including billions of dollars in grants, loans and tax relief initiatives — to help protect airline industry workers from the pandemic's financial fallout.