Airlines need another $70-80B to survive, says IATA chief

(FILE PHOTO) International Air Transport Association (IATA) chief executive Alexandre de Juniac (left) speaks at a press conference after the IATA annual meeting as Qatar Airways chief executive Akbar Al Baker (center) and Qantas chief executive Alan Joyce (right) look on in Sydney, Australia, on June 5, 2018. (Photo by PETER PARKS / AFP)

PARIS — Airlines need up to another $80 billion to survive, the head of the industry’s trade association told a French daily on Friday, as many countries tighten restrictions to confront another wave of coronavirus infections.

“For the coming months, the industry is estimated to need $70-$80 billion in additional aid,” the head of the International Air Transport Association (IATA) Alexandre de Juniac told La Tribune. “Otherwise they won’t survive.”

Airlines are one of the sectors worst hit by measures adopted by governments to slow the spread of the coronavirus, but they have also received an estimated $160 billion in aid.

“The longer the crisis lasts, the greater the risk for bankruptcies,” de Juniac was quoted as saying by the daily.

“Nearly 40” airlines “are in a very difficult situation or are under bankruptcy protection or administration,” he added.

Travel restrictions imposed during the first wave of the crisis forced many airlines to ground almost their entire fleet. Many governments stepped in with various forms of aid such as loans, cash injections, and support for furloughed workers.