USD 35 billion liability in June quarter over COVID-19: Airlines’ body
The airlines are faced with refunding USD 35 billion of sold but unused tickets in the April-June period as governments across the world have imposed travel restrictions to curb the spread of the novel coronavirus pandemic, according to a global airlines’ body. India has imposed a 21-day lockdown to contain the spread of the COVID-19 (coronavirus disease 2019), and domestic and international commercial passenger flights have been suspended for this period. Many other virus-affected countries have taken similar measures.
“On top of unavoidable costs, airlines are faced with refunding sold but unused tickets as a result of massive cancellations resulting from government-imposed restrictions on travel. The second quarter liability for these is a colossal $35 billion. Cash burn will be severe,” the International Air Transport Association (IATA) said on Tuesday.
