Cash burn & liquidity | News | Airfinance Journal

Cash burn & liquidity

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There is a liquidity crisis facing the global airline industry. IATA has forecast a cash burn of $61 billion during the second quarter of 2020. By contrast, global airline liquidity (excluding disclosed liquidity facilities of $24 billion) was only $88 billion at the end of December 2019 and the first calendar quarter of the year is never a strong cash-generating quarter, especially in the northern hemisphere. Add to that fact the onset of the Covid-19 crisis with its severe effect in February and March on Chinese, Japanese and South Korean airlines and it is likely that available liquidity was even lower at the end of the first quarter.

The Airline Analyst has just published a special report “Cash Burn and Liquidity” which asks the questions “where is the funding to cover the cash burn going to come from?” and “in what shape will this leave the global airline industry’s balance sheet and KPIs?”

In addition to these high-level questions, the report includes granular data on latest liquidity raisings for 78 airline groups (comprising 150 airlines) and their availability of unencumbered assets to support future liquidity raises.

The report is exclusively for subscribers to The Airline Analyst. If you would like to explore subscription options, please contact accountmanager@airfinancejournal.comOr click here to request a quick demonstration to learn more about The Airline Analyst from our team today.

To discuss the report, please call Michael Duff on +44 7736 804460 or contact him at mduff@theairlineanalyst.com.

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Regional Snapshot

Related Data

Transaction Snapshot
Air Company | Bond issue | 01-24 | $1.5bn
Financial Close:
11/02/2024
SPV:
Some Aviation Trust
Value:
$1,500.00m USD
Full Details