Coronavirus Slams Airlines, Cash Drawers, Knocks $157 Billion Off Share Values

In Graphics: Coronavirus Slams Airlines, Cash Drawers, Knocks $157 Billion Off Share Values

Global airlines are fast running out of cash due to Coronavirus epidemic.

Global airlines are fast running out of cash after cutting capacity by 90% or even grounding entire fleets due to the broad travel restrictions to contain the spread of the coronavirus, calling into question the survival of several firms.

The outbreak of the flu-like virus has wiped 41%, or $157 billion, off the share value of the world’s 116 listed airlines, with many using up their cash so fast they can now cover less than two months of expenses, a Reuters analysis showed.

The industry’s main global body, the International Air Transport Association (IATA), estimates the sector needs up to $200 billion in government support to help airlines survive.

The following charts show airlines’ liquidity ratios, and their changes in cash and debt levels against core earnings:

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Airlines’ change in cash levels
Photo Credit: Reuters

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Airline firms’ net debt-to-equ ratioality

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Cash on hand by region

Photo Credits: Reuters

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Airline firms’ debt-to-EBITDA ratios
Photo Credit: Reuters

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Airline market cap
Photo Credit: Reuters

(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)

Source: https://www.ndtv.com/world-news/in-graphics-coronavirus-slams-airlines-cash-drawers-knocks-157-billion-off-share-values-2196691

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