Global airlines face a net loss of $39 billion (Dh143bn) in the second quarter, burning through $61bn of cash, as air travel demand and revenues plummet due to the coronavirus outbreak, the International Air Transport Association (Iata) said.
Traffic is estimated to fall by 71 per cent, the steepest drop for the year, while revenues could shrink by 68 per cent, with weaker carriers facing a "substantial" risk of bankruptcy, Iata said in a media conference call on Tuesday.
"The crisis is beyond anything we have ever had in our industry," Alexandre de Juniac, Iata's director general, told reporters.
Iata's current scenario forecasts airlines will return to pre-crisis levels by the fourth quarter of 2020 as governments' fiscal stimulus measures and the anticipated gradual relaxation of travel restrictions take effect, according to Brian Pearce, Iata's chief economist.
The industry could then see a "significant recovery" in 2021 – unless the coronavirus makes a comeback, he added.
"It could take much longer for us to get through issues with virus, it could be that virus comes back," Mr Pearce said. "We’re exploring scenarios with a much longer period of weakness and the pressure on airlines is correspondingly larger."
The "severe" cash burn airlines are facing is compounded by an additional $35bn colossal liability in the second quarter, Iata said. This comes as airlines are refunding sold but unused tickets as a result of flight cancellations due to government-imposed travel restrictions, Iata said.
Governments are stepping up financial aid packages for their airlines to stem the fallout from the coronavirus outbreak.
There is likely to be an increasing trend of states taking shares in - or even nationalising - airlines in return for equity as financial relief for the companies during the crisis, Mr de Juniac said.
On Tuesday, the government of Dubai said it will inject funding into state-owned Emirates given the airline's strategic importance to the economy and its role in transforming the emirate into a global travel hub.
The announcement reflected Dubai's recognition of the importance of its carrier for the well-being of the emirate and its economy, Mr de Juniac said during the media call.
"That's the key issue: that's what we think every government should have as an approach," he said. "It's a key asset for any country to have a strong airline industry."
While most global carriers continue to operate cargo flights, which plays an important role in the transport of medical supplies, freight only contributes about 10 per cent of a full-service carrier's revenue and is a relatively small proportion of its business, Mr Pearce said.
Complicating the airlines' recovery from this pandemic, compared to previous ones, is that the global economy is tipping into a recession as the lockdowns slow economic activity and dent consumer confidence, he said.
Plane makers will also see a setback with delayed deliveries and some cancellations or reshuffling of orderbooks as their airline customers struggle to survive the crisis, Mr de Juniac said.
UAE currency: the story behind the money in your pockets
Red flags
- Promises of high, fixed or 'guaranteed' returns.
- Unregulated structured products or complex investments often used to bypass traditional safeguards.
- Lack of clear information, vague language, no access to audited financials.
- Overseas companies targeting investors in other jurisdictions - this can make legal recovery difficult.
- Hard-selling tactics - creating urgency, offering 'exclusive' deals.
Courtesy: Carol Glynn, founder of Conscious Finance Coaching
2.0
Director: S Shankar
Producer: Lyca Productions; presented by Dharma Films
Cast: Rajnikanth, Akshay Kumar, Amy Jackson, Sudhanshu Pandey
Rating: 3.5/5 stars
Key findings of Jenkins report
- Founder of the Muslim Brotherhood, Hassan al Banna, "accepted the political utility of violence"
- Views of key Muslim Brotherhood ideologue, Sayyid Qutb, have “consistently been understood” as permitting “the use of extreme violence in the pursuit of the perfect Islamic society” and “never been institutionally disowned” by the movement.
- Muslim Brotherhood at all levels has repeatedly defended Hamas attacks against Israel, including the use of suicide bombers and the killing of civilians.
- Laying out the report in the House of Commons, David Cameron told MPs: "The main findings of the review support the conclusion that membership of, association with, or influence by the Muslim Brotherhood should be considered as a possible indicator of extremism."
Killing of Qassem Suleimani
What sanctions would be reimposed?
Under ‘snapback’, measures imposed on Iran by the UN Security Council in six resolutions would be restored, including:
- An arms embargo
- A ban on uranium enrichment and reprocessing
- A ban on launches and other activities with ballistic missiles capable of delivering nuclear weapons, as well as ballistic missile technology transfer and technical assistance
- A targeted global asset freeze and travel ban on Iranian individuals and entities
- Authorisation for countries to inspect Iran Air Cargo and Islamic Republic of Iran Shipping Lines cargoes for banned goods
Killing of Qassem Suleimani
Labour dispute
The insured employee may still file an ILOE claim even if a labour dispute is ongoing post termination, but the insurer may suspend or reject payment, until the courts resolve the dispute, especially if the reason for termination is contested. The outcome of the labour court proceedings can directly affect eligibility.
- Abdullah Ishnaneh, Partner, BSA Law
COMPANY%20PROFILE
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Key facilities
- Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
- Premier League-standard football pitch
- 400m Olympic running track
- NBA-spec basketball court with auditorium
- 600-seat auditorium
- Spaces for historical and cultural exploration
- An elevated football field that doubles as a helipad
- Specialist robotics and science laboratories
- AR and VR-enabled learning centres
- Disruption Lab and Research Centre for developing entrepreneurial skills
Frida%20
%3Cp%3E%3Cstrong%3EDirector%3A%20%3C%2Fstrong%3ECarla%20Gutierrez%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EStarring%3A%3C%2Fstrong%3E%20Frida%20Kahlo%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3ERating%3A%3C%2Fstrong%3E%204%2F5%3C%2Fp%3E%0A
The specs: Lamborghini Aventador SVJ
Price, base: Dh1,731,672
Engine: 6.5-litre V12
Gearbox: Seven-speed automatic
Power: 770hp @ 8,500rpm
Torque: 720Nm @ 6,750rpm
Fuel economy: 19.6L / 100km
EPL's youngest
- Ethan Nwaneri (Arsenal)
15 years, 181 days old
- Max Dowman (Arsenal)
15 years, 235 days old
- Jeremy Monga (Leicester)
15 years, 271 days old
- Harvey Elliott (Fulham)
16 years, 30 days old
- Matthew Briggs (Fulham)
16 years, 68 days old
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Israel Palestine on Swedish TV 1958-1989
Director: Goran Hugo Olsson
Rating: 5/5
Ferrari
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HOW TO WATCH
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The five pillars of Islam
1. Fasting
2. Prayer
3. Hajj
4. Shahada
5. Zakat
The National Archives, Abu Dhabi
Founded over 50 years ago, the National Archives collects valuable historical material relating to the UAE, and is the oldest and richest archive relating to the Arabian Gulf.
Much of the material can be viewed on line at the Arabian Gulf Digital Archive - https://www.agda.ae/en
Read more about the coronavirus
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Who has been sanctioned?
Daniella Weiss and Nachala
Described as 'the grandmother of the settler movement', she has encouraged the expansion of settlements for decades. The 79 year old leads radical settler movement Nachala, whose aim is for Israel to annex Gaza and the occupied West Bank, where it helps settlers built outposts.
Harel Libi & Libi Construction and Infrastructure
Libi has been involved in threatening and perpetuating acts of aggression and violence against Palestinians. His firm has provided logistical and financial support for the establishment of illegal outposts.
Zohar Sabah
Runs a settler outpost named Zohar’s Farm and has previously faced charges of violence against Palestinians. He was indicted by Israel’s State Attorney’s Office in September for allegedly participating in a violent attack against Palestinians and activists in the West Bank village of Muarrajat.
Coco’s Farm and Neria’s Farm
These are illegal outposts in the West Bank, which are at the vanguard of the settler movement. According to the UK, they are associated with people who have been involved in enabling, inciting, promoting or providing support for activities that amount to “serious abuse”.
Game Changer
Director: Shankar
Stars: Ram Charan, Kiara Advani, Anjali, S J Suryah, Jayaram
Rating: 2/5
The specs
Engine: 4.0-litre flat-six
Torque: 450Nm at 6,100rpm
Transmission: 7-speed PDK auto or 6-speed manual
Fuel economy, combined: 13.8L/100km
On sale: Available to order now
