IATA Asks for More Government Action To Boost Airline Liquidity | Aviation International News

IATA Asks for More Government Action To Boost Airline Liquidity

The International Air Transport Association calls for states to allow airlines to issue vouchers rather than direct refunds for canceled tickets.

Air Canada will benefit from its government's move to allow airlines to issue vouchers rather than direct refunds for canceled flights. (Image: Flickr: Creative Commons (BY-SA) by BriYYZ)

By Gregory Polek • Senior Editor

March 31, 2020

The International Air Transport Association on Tuesday warned that the airline industry’s liquidity crisis due to the Covid-19 outbreak will see half of all carriers running out of cash within two to three months without intervention from governments. Speaking during a conference call with journalists, IATA chief economist Brian Pearce and director general Alexandre de Juniac called on governments to allow airlines to provide vouchers for canceled flights rather than direct refunds as a way to help mitigate the problem. Some governments, such as Canada and Brazil, have already done so, said de Juniac, who, while acknowledging the hardship to customers, called the situation a “matter of survival” for the airlines. In fact, he noted, airline bankruptcies leave ticket holders with little recourse to recover their fares.

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