IATA: Airlines facing rapid cash burn
U.S., March 31 -- The International Air Transport Association ( IATA ) published new analysis showing that airlines may burn through $61 billion of their cash reserves during the second quarter ending 30 June 2020, while posting a quarterly net loss of $39 billion.
This analysis is based on the impact assessment IATA released last week, under a scenario in which severe travel restrictions last for three months. In this scenario, full-year demand falls by 38% and full-year passenger revenues drop by $252 billion compared to 2019. The fall in demand would be the deepest in the second quarter, with a 71% drop.
The impact will be severe, driven by the following factors:
* Revenues are expected to fall by 68%. This is less than the expected...
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