Flybe’s collapse – Europe’s biggest regional airline

A global airline industry body has recently warned that the financial hit from coronavirus could reach $113bn (£87bn) this year. This unwelcoming prediction came on the same day UK-based Flybe went into administration. It could be the start of more causalities as passengers cancel their flights. Demand has plummeted, not just from holidaymakers, but from corporate travel as firms restrict business trips for employees and conferences are postponed.

‘Airlines could lose $63bn to $113bn in revenue from the slump in passenger traffic globally this year, the International Air Transport Association (IATA) said’. In February, it had predicted losses of $29bn.

“This is a very difficult time for the airline industry, and it will be about conserving cash. It will be a very challenging time for those airlines who don’t have a lot of cash, especially those that have been involved in a price war”

As planes are grounded, cost-cutting measures seem to have already been introduced by various airlines, such as staff asked to take unpaid leave.