GENEVA - The global airline industry needs government aid and bailout measures totalling between US$150 billion and US$200 billion if it's to survive the coronavirus crisis, according to the International Air Transport Association .
Iata, which represents 290 airlines around the world, said a March 5 estimate suggesting carriers will lose US$113 billion in revenue this year is already outdated. It didn't take into account the border closures and flight bans that have been enforced around the world as the virus has spread. Credit rating companies have started to take action on European airlines. Deutsche Lufthansa AG sank into non-investment-grade territory after a one-step downgrade by Moody's. Its bonds due 2024 fell 10 cents on the euro to 78 cents, according to data compiled by Bloomberg.
The Iata's estimate of global bailout requirements comes after the Airlines for America trade group said on Monday that US carriers will need US$58 billion in aid.