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Airline industry braces for lengthy recovery from coronavirus crisis

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A full airline industry recovery from the coronavirus looks prolonged at best, analysts said, as new data showed international seat capacity had ...

SYDNEY/WASHINGTON: International seat capacity has dropped by almost 80per cent from a year ago and half the world's airplanes are in storage, new data shows, suggesting the aviation industry may take years to recover from the coronavirus pandemic.

ForwardKeys said the number of international airline seats had fallen to 10 million in the week of March 30 to April 5, down from 44.2 million a year ago. Planemakers are looking at drastic cuts in wide-body production amid a slump in demand for the industry's largest jetliners, manufacturing and supplier sources said.

Such support could include direct financial support, easing the way for loans and loan guarantees and backing for the corporate bond market, he added. U.S. Transportation Secretary Elaine Chao said that the government should not ground domestic flights during the crisis and that it was up to the airlines to make commercial decisions on flight destinations.

Hong Kong's Cathay Pacific Airways Ltd said on Friday it would further cut passenger capacity after carrying just 582 passengers one day this week, a load factor of 18.3per cent, compared to 100,000 customers on a normal day.

 

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