I think the biggest burden now for airlines is the debt they have racked up which was loans not granted to them by a government... basically uk airlines. Stick a load of interest on top of those loans while share holders are wanting their dividends. It is going to be really very tough now
I will say that there are airlines that should be in administration (Norwegian)
There will definitely be a few airlines that will go under, or get bought out. Seen more than a few mortgage their frequent flyer programs for short term cash too, next step is bankruptcy (American Airlines, United), BA had to sell their art out of their lounges (lol) and got a solid cash infusion by selling miles to AmexI think the biggest burden now for airlines is the debt they have racked up which was loans not granted to them by a government... basically uk airlines. Stick a load of interest on top of those loans while share holders are wanting their dividends. It is going to be really very tough now
I will say that there are airlines that should be in administration (Norwegian) but with government loan has just delayed the inevitable.
It really is very sad
British Airways-owner IAG boosted by 750 million pounds deal with American Express
British Airways-owner International Airlines Group <ICAG.L> said American Express would pay it 750 million pounds ($955 million) to renew their partnership, providing a welcome boost to the airline's finances at a time when it is burning through cash.
www.reuters.com