Covid-19 has definitely changed the way we live our everyday lives. It has triggered a global recession and has brought our overall mobility to a standstill. Just yesterday, I highlighted some tips by which you could maximize miles and points earning during a lockdown. However, we’ll probably have to wait a few weeks if not months until travel comes back to normal levels. With airlines going bust, we’re set for a totally different looking travel industry in the near future.
Airlines’ Covid-19 Woes
Over the last week, I’ve covered the airline industry’s financial woes in detail. Customer demand remains low. In light of low demand, airline management has had to make tough choices. However, not all airlines have dealt it in the same way. United’s handling during and after the bailout has been under particular scrutiny and for good reason.
This Business Insider report sheds more light on the industry’s woes. As per IATA’s estimate, airlines have already lost at least $314 Billion due to the Covid-19 outbreak. While certain airlines are filing for bankruptcy or going into administrations, the long term vitality and survival of these airlines is definitely at stake. The report lists all the global airlines which have already gone bankrupt or stopped operations:
- Flybe (UK) – March 2020
- Trans States Airlines (US): March 2020
- Compass Airlines (US): March 2020
- Virgin Australia (Australia): April 2020
- Avianca (Colombia): May 2020
In spite of the recent taxpayer funded bailout of the US travel industry, Boeing CEO Dave Calhoun made a grim prediction. He predicted that a major US airline could go out of business by September. You can watch the video of his interview here.
The Pundit’s Mantra
Given the current situation, we could well see more global airlines added to this list. Global demand still remains low. Most industry estimates point that more airlines could file for bankruptcy in the upcoming months or simply cease to exist. ___________________________________________________________________________________________________________________
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