Most Airlines Could Be Bankrupt by May According to This Industry Analyst

The COVID-19 coronavirus outbreak could drive most of the world's airlines into bankruptcy by the end of May, according to a new report out Monday by Australian consulting firm CAPA-Centre for Aviation.

Airlines are cutting flights and freezing capex to try to deal with a plunge in travel demand due to the novel coronavirus outbreak and actions by world governments to try to limit international flights. CAPA in a report said that as a result many airlines are likely substantially in breach of debt covenants already, and cash reserves are running down quickly.

"Coordinated government and industry action is needed-now-if catastrophe is to be avoided," CAPA wrote in its report.

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Source Fool.com