Global airlines need financial support

Created on 17.08.2022 12:40

The global aviation industry continues to face complicated and challenging conditions. Rising costs associated with macroeconomic, environmental and geopolitical threats, as well as rising fuel, infrastructure and labor costs place pressure on the industry, according to IATA. The aviation business is still losing overall. This year, airlines will suffer a combined loss of $ 9.7 billion.

Despite a gradual recovery in operating performance, insolvency risks of airlines are increasing in several regions. Since the pandemic, 90 airlines were on the verge of bankruptcy. The list of bankruptcies and pre-bankruptcy states would be longer if the states did not provide anti-crisis financial support. According to IATA estimates, states allocated more than $243 billion to support their carriers, such as loans, state guarantees, subsidies, compensations and fiscal privileges from March 2020 to October 2021.

Over the past year, large logistics companies have begun to take a greater interest in the aviation business. During the pandemic, the cargo segment of the market faced a sharp reduction in carrying capacity, disruption of supply chains and unpredictable price dynamics. Therefore, many logistics companies are interested in strengthening ties through the creation of their own aviation divisions.

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