Airlines Digging Deep To Manage Cashflows

As airlines struggle with their revenues and cashflows as a result of the travel slump brought about by the Covid-19 pandemic, Director, Conor Blake examines the impact on aircraft leasing activity and how significant financial restructuring will be required by airlines and lessors.

It is fair to say that few sectors have been more impacted by the global population lockdown than commercial air travel. In the UK for example, travel data provider OAG reported that for the week beginning 30 March, international flights were down 81% and domestic flights 61% on 2019 figures. Many airlines have grounded their entire global fleets and been forced to furlough employees, with Europe's largest commercial carrier Ryanair operating just 1% of its normal schedule and British Airways furloughing 30,000 of its 40,000 staff. The few planes that are flying are not operating anywhere near full capacity.