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.
Sign up for Today's Best Articles in your inbox
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.
-
Book reviews: 'America, América: A New History of the New World' and 'Sister, Sinner: The Miraculous Life and Mysterious Disappearance of Aimee Semple McPherson'
Feature A historian tells a new story of the Americas and the forgotten story of a pioneering preacher
-
Another messaging app used by the White House is in hot water
The Explainer TeleMessage was seen being used by former National Security Adviser Mike Waltz
-
AI hallucinations are getting worse
In the Spotlight And no one knows why it is happening
-
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
-
Crafting emporium Joann is going out of business
Speed Read The 82-year-old fabric and crafts store will be closing all 800 of its stores
-
Trump's China tariffs start after Canada, Mexico pauses
Speed Read The president paused his tariffs on America's closest neighbors after speaking to their leaders, but his import tax on Chinese goods has taken effect
-
Chinese AI chatbot's rise slams US tech stocks
Speed Read The sudden popularity of a new AI chatbot from Chinese startup DeepSeek has sent U.S. tech stocks tumbling
-
US port strike averted with tentative labor deal
Speed Read The strike could have shut down major ports from Texas to Maine