Emirates, Etihad claim 85% of airlines to collapse without aid
The novel coronavirus has shut all the air travel demand across the globe, including the neighbouring hubs of Dubai and Abu Dhabi that serve as homes for Emirates
Middle East's two of the biggest airlines are warning that 85 percent of airlines globally may face bankruptcy by the end of this year if the governments do not provide financial support.
Until 2023, passenger demand will not return to pre-crisis level, Tim Clark, the president of Emirates and Tony Douglas and Chief Executive Officer of Etihad Airways in a joint statement issued by the US-UAE Business Council.
The coronavirus has shut all the air travel demand across the globe, including the neighbouring hubs of Dubai and Abu Dhabi that serve as homes for Emirates, the industry's largest 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 the way passengers fly will be different until an effective vaccine becomes widely available.
Last month, Dubai based Emirates received assurances for government support.
Airlines have been hit with an unprecedented near-total shutdown of travel as the health emergency sweeps across continents and governments close borders and order populations to stay at home.
According to the International Air Transport Association, about 70 per cent of global carrier capacity is idled and the industry stands to lose USD 314 billion in 2020 in ticket sales.
Disclaimer: This article first appeared on Bloomberg.com, and is published by special syndication arrangement.
