With airlines in “survival mode”, they face a USD 61bn cash burn in Q2 because of COVID-19, according to the International Air Transport Association (IATA). And the outlook for the rest of 2020 is just as gloomy: the IATA predicts that global passenger revenues will drop by USD 314bn, a 55% decline compared to 2019.2https://www.iata.org/en/pressroom/pr/2020-04-24-01/
This isn’t the first pandemic that airlines have battled against; the severe acute respiratory syndrome (SARS) and H1N1 (Swine flu) outbreaks were also testing times. However, the magnitude of, and pace of change triggered by, COVID-19 has been unprecedented. American Airlines cut its international capacity by 75% YoY from 16 March to 6 May, while United Airlines cut 85% of its international flights for April.
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