Global airlines likely to be bankrupt by end of May, aviation consultant warns


Without government intervention, most airlines will go bankrupt by the end of May amid the coronavirus outbreak, an aviation consultant warns.
The warning, published by CAPA Centre for Aviation, based in Sydney, Australia, noted that cancellations outweigh future bookings, and airlines are seeing an unprecedented lack of demand.
Airlines have taken many precautions already — cutting flights and postponing new pilot trainings — amid recommendations to stay home and international travel restrictions.
Subscribe to The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.

Sign up for The Week's Free Newsletters
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
CAPA notes "national self-interest over cooperation" to be a major threat of airlines throughout the world. The largest airlines in the U.S. and China will likely survive with government or owner assistance, per CAPA.
But intergovernmental coordination is necessary, CAPA says, and without it, "emerging from the crisis will be like entering a brutal battlefield, littered with casualties."
"The last thing the world needs post-coronavirus is a nationalistic aeropolitical confrontation," CAPA stated.
A free daily email with the biggest news stories of the day – and the best features from TheWeek.com
Taylor Watson is audience engagement editor for TheWeek.com and a former editorial assistant. She graduated from Syracuse University, with a major in magazine journalism and minors in food studies and nutrition. Taylor has previously written for Runner's World, Vice, and more.
-
Are AI lovers replacing humans?
Talking Points A third of Gen Z singles use tech as a 'romantic companion'
-
What are the Trump Accounts for kids and how do they work?
The Explainer Parents will soon be able to open tax-advantaged investment accounts on their child's behalf
-
'This comes with policy implications'
Instant Opinion Opinion, comment and editorials of the day
-
Dollar faces historic slump as stocks hit new high
Speed Read While stocks have recovered post-Trump tariffs, the dollar has weakened more than 10% this year
-
Economists fear US inflation data less reliable
speed read The Labor Department is collecting less data for its consumer price index due to staffing shortages
-
Crypto firm Coinbase hacked, faces SEC scrutiny
Speed Read The Securities and Exchange Commission has also been investigating whether Coinbase misstated its user numbers in past disclosures
-
Starbucks baristas strike over dress code
speed read The new uniform 'puts the burden on baristas' to buy new clothes, said a Starbucks Workers United union delegate
-
Warren Buffet announces surprise retirement
speed read At the annual meeting of Berkshire Hathaway, the billionaire investor named Vice Chairman Greg Abel his replacement
-
Trump calls Amazon's Bezos over tariff display
Speed Read The president was not happy with reports that Amazon would list the added cost from tariffs alongside product prices
-
Markets notch worst quarter in years as new tariffs loom
Speed Read The S&P 500 is on track for its worst month since 2022 as investors brace for Trump's tariffs
-
Tesla Cybertrucks recalled over dislodging panels
Speed Read Almost every Cybertruck in the US has been recalled over a stainless steel panel that could fall off