IATA now forecasts airlines will lose US$314b in passenger revenue this year amid the coronavirus outbreak, a deepening of $62b from its previous projection. The new forecast equates to carriers’ 2020 passenger revenue being down 55% on 2019’s figure, and reflects worsening economic forecasts and predictions that the return to air travel is likely to be slower than previously expected. The lower revenue in the new forecast is based on a projected 48% fall in traffic measured in RPKs for the full year, IATA states. “We have never seen a downturn this deep before,” says IATA DG Alexandre de Juniac. ”In our latest scenario, full-year passenger revenues plummet 55% compared to 2019, while traffic falls 48%. In other words, half our business disappears. That’s catastrophic.” <br/>
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US airlines reached preliminary agreements with the Treasury Department to access billions of dollars in aid as the govt attempts to shore up one of the industries hardest hit by the coronavirus pandemic. The deal covers all major carriers, the Treasury said. The govt is doling out US$25b in payroll assistance allocated for passenger carriers in the $2.2t stimulus package signed into law March 27. Treasury secretary Steven Mnuchin said the program “will support American workers and help preserve the strategic importance of the airline industry while allowing for appropriate compensation to the taxpayers.” The Treasury expects to start doling out the funds as soon as this week, according to a person familiar with the matter. <br/>
A pool of US$10b in federal grants to US airports ordered by Congress in a $2t aid package are ready for delivery, the govt said Tuesday. The FAA provided a list of the hundreds of grants, and Transportation secretary Elaine Chao said the money is being sent as soon as possible to help the industry that has seen a reduction of more than 95% of airline passengers. “This $10b in emergency resources will help fund the continued operations of our nation’s airports during this crisis and save workers’ jobs,” Chao said. The money can be used for payroll, utilities, debt payments and capital expenditures. The normal process that requires airports to spend a portion of their own money on projects funded under such grants is being waived so that the funds can go directly to helping airports, the DoT said. <br/>
Airline pilots who take either of the 2 drugs president Donald Trump has touted for use against Covid-19 are disqualified from flying, US aviation regulators are warning. Trump has repeatedly said he’s optimistic about the prospects for 2 anti-malarial drugs, chloroquine or hydroxychloroquine, as treatments for people with the new coronavirus, but the FAA says pilots should steer clear until more studies can be done. “There is currently no satisfactory scientific evidence that use of these medications decreases the severity of Covid-19,” said the director of the FAA’s Medical Specialties Division. The FAA closely monitors pilots’ health along with testing their flying proficiency. For years the 2 drugs have been on the agency’s lengthy list of substances it prohibits for cockpit crews. <br/>
There were mixed fortunes for the two mainline jet manufacturers during Q1 2020, but the overall trend was in the wrong direction amid a declining economic outlook. Buoyed by a strong start to the year, Airbus ended the quarter with 290 net orders and 122 deliveries. Toulouse’s performance was aided by keeping cancellations to just 66 aircraft. Boeing on the other hand continued to suffer the effects of the Max grounding, which hampered its delivery performance and stymied single-aisle sales. This meant it shipped just 50 aircraft in total during the first 3 months, putting the OEMs’ combined tally at 172 deliveries. For Seattle, a calamitous situation with orders saw cancellations afflicting almost every product line, but concentrated on the Max. <br/>
Heathrow Airport, traditionally the busiest in Europe, forecasts that passenger numbers will plunge by more than 90% in April, as coronavirus restrictions stop most people from travelling. The remaining 10%, or around 680,000 people, still using Heathrow this month will be either Britons returning home after being stuck abroad or foreign citizens repatriating, as well as medical experts travelling to help with the crisis. Heathrow also said Tuesday its passenger numbers were down 52% in March compared with the same month last year, as the 6.5m who went on holiday or travelled for work last March shrunk to 3.1m this year. The airport said it was now only using 1 of its 2 runways. The airport said priority was now being given to cargo flights with medical supplies. <br/>
The next test of strained relations between the Dutch and their EU neighbours, after the fortnight-long car crash of a negotiation that resulted in Thursday’s E500b rescue package for those worst hit by the Covid-19 pandemic, could well be over whether Europe still needs an airline tax. Amid bruised egos and battered solidarity, finance ministers finally agreed Thursday that the coronavirus aid will be paid as loans through the European Stability Mechanism (ESM) – rather than as “corona bonds”, which would have mutualised the debt across the bloc. The idea of sharing the debt in the form of one-off euro bonds was opposed by Germany, the Netherlands, Austria and Finland, though the Dutch were the most obstinate in their opposition, trading insults with Italy, Spain and Portugal as the deadlock deepened. <br/>
Russian airspace data indicates that the number of domestic services increased during March, even as coronavirus restrictions badly affected international traffic. Figures from the state air traffic management corporation show that domestic flights rose by over 11% to more than 73,000 last month. But the number of international services was down by nearly 37% including a 40% drop in transit flights through Russian airspace. The corporation says that Russian air traffic controllers handled 115,200 flights during March, a reduction of close to 13%. For each of the first 2 months of the year the figure had increased by more than 7%, and overall numbers stayed flat for the first quarter. Russian authorities suspended scheduled and charter flights to and from foreign destinations March 27. <br/>
India will suspend all scheduled passenger flights for nearly 3 more weeks after the country extended a coronavirus-related lockdown. The civil aviation authority says that all domestic and international scheduled airline operations will remain suspended until May 3. It adds that the restriction does not apply to international all-cargo operations and “flights specifically approved” by the authority. India’s civil aviation minister Hardeep Singh Puri said: “There were good reasons for the lockdown to be extended till 3rd May. We can consider lifting restrictions on both domestic [and] international flights thereafter.” India has been on lockdown since March 25 and prime minister Narendra Modi said Tuesday that the country has made good progress tackling the coronavirus outbreak. <br/>