Emirates, Etihad claim 85pc of airlines to collapse without aid
Two of the largest airlines of Middle East are warning that 85 % of airlines globally may face bankruptcy by the finish of the year if governments usually do not provide financial support.
Passenger demand will not return to pre-crisis level until 2023, said Tim Clark, President of Emirates and Tony Douglas, CEO of Etihad Airways in a joint statement issued by the US-UAE Business Council.
The coronavirus has destroyed air travel demand around the world, like the neighbouring hubs of Dubai and Abu Dhabi that serve as homes for Emirates, the industry’s most significant long-haul carrier, and Etihad respectively.
Lasting restrictions such as two-week quarantines, testing and social distancing will impact demand and operations, they said, adding that just how passengers fly changes until a highly effective vaccine becomes accessible.
Last month, Dubai based Emirates received assurances for government support.
Airlines have already been hit with an unprecedented near-total shutdown of travel as medical emergency sweeps across continents and governments close borders and order populations to stay at home.
According to the International Air Transport Association, about 70 % of global carrier capacity is idled and the industry stands to lose USD 314 billion in 2020 in ticket sales.
