Airline coronavirus story could go from ‘Apocalypse Now’ to ‘The Big Short’

When IATA outlined its latest estimates for the impact of coronavirus on the airline industry Tuesday, the urgency of the situation was front and centre of its messaging. It points out that markets with severe restrictions on air travel currently cover 98% of global passenger revenues. Therefore, in a situation where “the typical airline had 2 months of cash at the start of this year”, this is an “apocalypse now” scenario. Beyond this initial period of need, however, IATA also highlights a vital detail regarding this pandemic: unlike other outbreaks seen in recent history, it is likely to cause a global recession. For many airlines, the passing of the coronavirus – and there is clearly no guarantee of when this will happen – might herald the beginning of a new crisis as economic conditions worsen. <br/>