The global airline industry is facing an unprecedented crisis.
Airlines around the world have grounded large proportions
of their fleets and announced plans
to lay off thousands of staff as they attempt
to survive a shutdown of international travel
amid the widening coronavirus pandemic.
Over the course of this week, the outlook for the aviation
sector has darkened further.
Air travel has come to a virtual halt across the globe,
particularly in Europe, as governments have imposed travel
bans and lockdowns as they look to contain
the spread of the virus.
According to the International Air Transport Association,
the global airline trade body, the coronavirus pandemic
now covers markets which represent as much as 94
per cent of global passenger revenues.
On Monday more than 14 airlines announced new measures
to slash costs, with some reducing the number of flights
by as much as 90 per cent.
But by Wednesday, Ryanair, Europe's largest
low-cost airline, warned it expected to ground almost all
of its entire fleet by Tuesday.
The severity of the crisis has prompted carriers
to turn to governments for a lifeline.
The global airline industry has said
it will need up to $200bn in emergency support
as it faces a cash crisis in the face of a global lockdown.
The industry's trade body has warned
that the majority of airlines face
running out of money within two months, pointing to the fact
that a large number of carriers globally are highly leveraged.
Only about 30 airlines have driven the improvement
in profitability seen in the airline industry
over the last 10 years.
The UK, US, France, Italy, Norway, the Netherlands,
Russia, and others have all indicated
they would provide support measures, ranging
from low-cost loans to tax breaks
for the struggling airlines.
But while many countries are likely to offer
financial support, the question will
be how many carriers will still be
able to survive the shutdown in air travel,
particularly as no one knows when this will end.
And once it does end, just how quickly
will travel demand return?