Category: Top Stories

As the COVID-19 pandemic shows no sign of receding and numbers of reported cases increasing in over 35 U.S. states, the uncertain demand for future air travel has seen Delta Air Lines (Delta) halve its anticipated 1,000 flight increase for the month of August to just 500 flights. Having posted a net quarterly loss of US$5.8 billion, it’s worst result since 2008, and currently operating at a cash burn rate of approximately US$27 million on a daily basis, the U.S. carrier, which is the world’s second-largest carrier by number of scheduled passengers carried, revenue passenger-kilometers flown and fleet size, had Read more

With the effects of the COVID-19 pandemic seeing flight hours of Rolls-Royce engines halved, the British company has advised that it has already burned through £3 billion (US$3.8 billion) and anticipates that a further £1 billion (US$1.3 billion) of outflow will transpire in the second half of the year. For the months of April through June, flying hours for its engines fell 75 percent. While still having £8.1 billion (US$10.5 billion) available, Rolls-Royce is now looking at options to strengthen its balance sheet, according to Warren East, the company’s CEO. He told reporters this Thursday that: “The COVID-19 pandemic has Read more

Air Asia’s future is in “significant doubt” according to Ernst & Young auditors. Asia’s largest low-cost carrier has been hit hard by the massive drop in air travel as a consequence of the COVID-19 pandemic and strict travel restrictions. In a statement issued to the Kuala Lumpur stock exchange by Ernst & Young, the carrier’s substantial level of debt was highlighted, with current liabilities exceeding current assets by 1.84bn ringgit (US$430m). Shares in the Malaysia-based carrier fell 17% on Wednesday, a day after trading was halted. With so many planes currently grounded by the pandemic, the current financial performance indicates Read more

Bondholders in Virgin Australia Holdings (Virgin Australia) have made an application to the Takeover Panel seeking approval to submit an alternative purchase proposal to creditors to consider against the currently accepted offer from private equity group Bain Capital for an as-yet undisclosed sum. Bondholders are not the only ones to object to what they see as unacceptable sales processes carried out by the administrators, Deloitte, which had precluded them from submitting their own proposal. According to Reuters news agency, Singapore’s Broad Peak Investment Advisers and Hong Kong’s Tor Investment Management are also seeking interim orders allowing them to access information Read more

Under a US$25 billion emergency loan program, five American airlines have confirmed they have successfully concluded negotiated loan deals with the U.S. Treasury. Unlike previous financial assistance in the form of payroll assistance which did not have to be repaid, this new financial aid will be in the form of a repayable loan, though the terms have not been disclosed. While several more U.S. airlines are still in negotiations with the U.S government, American Airlines is due to close on a US$4.75 billion treasury loan in Q3, which is in addition to the payroll loan of US$5.8 billion already received. Read more

With Latin American (LaTam) governments refusing to bail out their struggling airlines, Aeromexico has become the latest LatAm carrier to file for Chapter 11 bankruptcy as the effect of the Covid-19 pandemic continue to wreak havoc with the travel industry. Aeromexico has made it clear that the bankruptcy filing was totally “voluntary” and that to all intents and purposes it would carry on with its current plans. This included quadrupling the number of international flights and doubling the number of domestic ones in August as restrictions on travelling are lifted. The Mexican carrier has confirmed that tickets, reservations, electronic vouchers Read more