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South Korea’s financial authorities will provide one trillion won ($828m) in liquidity to Korean Air Lines by issuing government-guaranteed bonds as early as the end of this month, Yonhap News reported. The cash-strapped flag carrier needs the funds to stay afloat as the aftermath of the Covid-19 outbreak is likely to continue to hinder its operations into H2 2020, according to the report, which cited an unidentified government official. Earlier this year, the airliner received 1.2t won of aid from the state-run Korea Development Bank and the Export-Import Bank of Korea for its financial needs in H1, Yonhap said. Korean Air has 3.3t won in debt coming due this year alone, and the amount could swell to 4t won if investors of its hybrid bonds exercise their rights for early redemption, it said.<br/>

Delta will drop service to 11 midsize US cities next month amid weak demand because of the Covid-19 pandemic, a reminder of the industry’s fragility after a record stock rally. The service suspensions affecting cities from Aspen, Colorado, to Bangor, Maine, will help lower costs, Delta said in a statement Friday. The affected airports are among 75 authorised this week for service cuts by the US Department of Transportation. They all will retain at least some flights from other carriers, the agency said. “Delta continues to face an unprecedented impact to our business, and suspending operations at these airports will reduce costs where customer demand is low,” said Sandy Gordon, senior VP of domestic airport operations. Delta’s cuts provide a counterpoint to investor exuberance this week after American Airlines Group boosted its flight schedule for next month and United followed suit hours later, signaling gains in demand. <br/>