More carriers in the Asia-Pacific region could fall as a result of the coronavirus crisis, if governments fail to step in with relief measures.
Highlighting the “worsening” impact of the pandemic on carriers in the region, airline body IATA also identified eight countries which are most at risk.
These countries include South Korea, Malaysia, Japan, Sri Lanka, as well as Thailand.
They are estimated to see the highest revenue impact from the outbreak, according to IATA’s individual country impact study.
Reiterating calls for more government assistance, IATA regional vice president for Asia-Pacific Conrad Clifford says: “The situation is deteriorating. Airlines are in survival mode. They face a liquidity crisis with a US$61 billion cash burn in the second quarter.”
He warns that “there will be more casualties if governments do not step in urgently to ensure airlines have sufficient cash flow to tide them over this period”.
The body is calling for direct financial support, loans, loan guarantees, as well as tax relief measures.
Clifford’s comments come days after Virgin Australia entered voluntary administration, the first Asia-Pacific carrier to take action amid the coronavirus crisis.
In its latest analysis on the financial impact of the coronavirus outbreak, IATA forecast a global airline passenger revenue drop of $314 billion this year.
Asia-Pacific carriers will make up the largest proportion of this revenue hit — $113 billion, up from $88 billion in a March estimate.