First, it is general knowledge that airlines have been the worst hit business by the ongoing pandemic. Everyone knows that already.
[COLOR=rgb(226, 80, 65)]The question is, how bad is the situation? A hell lot worse than what most people think. Warren Buffet offloaded all his airline stocks and cut his losses. Berkshire Hathaway lost 1.9 billion in the process. Buffet is the smart money. People know it is bad, but they have no idea how badly it will impact the business and for how long. If airlines are to maintain the CDC social distancing recommendations of 6ft, airlines will be forced to carry 1/3 to 1/2 of their current capacity. Airlines have extremely high fixed costs. That means that the critical number of passengers needed is extremely high for them to break even. At 1/3rd capacity and current prices of tickets, planes won’t break even. Chenye najaribu kuwaambia flying will now be exclusively for the rich not upcoming birrioneas. Ticket costs will 2X or 3X in price if this covid-19 disaster persists. Significantly fewer people will afford plane tickets and so the airline industry will be underwater for a very long time.
Covid-19 is not the end of the airline industry. However, it possibly is the end of low-cost flights you have been enjoying. For the next couple of years, it will cost an arm and a leg to travel if the covid-19 problem isn’t solved.
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The only thing that might happen is their respective government will provide some kind of bailout…
Or the airline will sack most of their staff to reduce the overhead cost…