Issued on 28 May 20
The IATA International Air Transport Association predicts that the liabilities of global airlines will increase by 120 billion US dollars to 550 billion US dollars by the end of this year.
Of which $ 67 billion in new debt came from government payments ($ 50 billion), deferred taxes ($ 5 billion) and credit guarantees ($ 12 billion); $ 52 billion came from commercial institutions, including commercial loans ($ 23 billion), capital Market debt (US $ 18 billion), new business debt (US $ 5 billion) and withdrawals from existing credit instruments (US $ 6 billion)
IATA also stated that local governments have pledged a total of US $ 123 billion in aid to
airlines, mainly for salary allowances, securities financing, and tax relief, of which US $ 67 billion requires repayment. IATA believes that the relevant assistance will play a key role, and it also indicates that airlines are expected to consume US $ 60 billion in cash in the second quarter. As more than half of the support generates new debts and completely changes the financial situation of the aviation industry, airlines will take longer to repay loans than passengers will need
Do you think charter hire for cargo flight remains current level in coming few months?
Per various investment media Info. keep on short sell airlines stake? although Warren Buffett already sold all airlines stakes recently.
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