Most Airlines Could be Bankrupt by May
COVID-19 continues to take a hard hit towards major airline carriers. This could result in most of them going bankrupt. Europe’s biggest “low cost carrier,” Ryan-air, released a statement saying it will ground most of its fleet over the next ten days. This follows the biggest cutback by Delta in its history and United Airlines cuts its capacity in half. Three major airlines, OneWorld, SkyTeam, and Star joined forces Monday to call for government help.
The three alliances together represent nearly 60 airlines and are asking airport operators to waive fees like landing charges. The issue is, airport operators are also losing revenue and may need help themselves. Even with the government’s help, industry observers believe some airlines will continue to face financial problems.