Recent data showed that 43 commercial airlines around the world have completely stopped or suspended their operations since the beginning of this year until now, at a time when air travel has almost stopped due to the outbreak of the Corona pandemic.
According to the data issued by the company “Cerium”, which specializes in data and analysis of the travel and aviation sector, these numbers come compared to the suspension of 46 companies in the whole of 2019, and 56 companies in 2018.
Usually, many airline failures occur in the last few months of the year, with the first and fourth quarters being the “toughest” for airlines around the world, because most of the revenues are generated in the second and third quarters.
Cerium indicated that strong government support may spare some airlines from facing the specter of bankruptcy, but more companies may fail in the coming months.
According to Cerium, the definition of failure at an airline is that the company has either stopped or suspended its operations altogether.
“If there is a positive side to all of this, it is that things were so bad that governments had no choice but to support,” said Rob Morris, head of global counseling at Cerium, in an email to CNBC.
Morris said that despite the financial aid, the outlook for the rest of 2020 is not encouraging, adding, “Many airline failures usually occur in the last few months of the year.”
“Had it not been for the government’s interference and support, we would have faced mass bankruptcies in the first six months of this crisis,” said Brendan Soby, an independent analyst at Subi Aviation.
Sobi added that many airlines were already second before the pandemic, but now have a better chance of survival due to government assistance