Airlines Need $200 Billion to Survive COVID-19

Airlines worldwide need $200 billion (KSh20.8 trillion) capital injection for them to remain afloat in this COVID-19 pandemic, officials from International Air Transport Association (IATA) now say.

IATA reports that 75% of the airlines only have cash to cover three months of their fixed expenses. Airlines globally have recorded a reduction in business as a result of travel restrictions.

According to IATA Director General, Alexandre de Juniac, governments could do the following to help airlines:

• Offer financial support for carriers to compensate for reduced revenues
• Loans, loan guarantees and support for the corporate bond market
• Tax relief: Rebates and/or suspension of the same

Already, plane makers Boeing and Airbus are in talks with their respective governments regarding the state aid, with the former allegedly seeking $60 billion.

Locally, Kenya Airways already reported a $8 million loss after suspending flights on its Nairobi – Guangzhou route where there was an upsurge of the COVID-19 cases. Its subsidiary, Jambojet, suspended flights to Rwanda and Uganda yesterday.

Airlines Suspend Flights to China

Suspension of Nairobi-China Flights Costs KQ $8 Million