Airlines seen burning $61b in roughest stretch of crisis

Airlines will burn through as much as $61b worldwide in Q2, industry group IATA predicted, warning that carriers could run out of cash as travel hits a low point in the coronavirus crisis. Airline revenue is set to crater by 68% during the period, the IATA, which represents some 290 carriers, said Tuesday. It urged governments to relax rules that could force the industry to fork out cash refunds for canceled trips totaling as much as $35b. “Airlines cannot cut costs fast enough to stay ahead of the impact of this crisis,” Director General Alexandre de Juniac said. “Without relief, the industry’s cash position could deteriorate by $61b in the second quarter.” In all, IATA expects the airline industry to post a net loss of as much as $39b in Q2. The projection is based on its forecast last week that airlines worldwide could lose $252b in revenue this year. Airlines are scrambling to line up bailouts after grounding entire fleets in some cases to minimize costs and preserve cash while the coronavirus pandemic makes travel impossible. Most carriers will go bankrupt by the end of May if they can’t find support, the Sydney-based CAPA Centre for Aviation said this month.<br/>