Snapshot: How much pain is the airline industry suffering under Covid-19?

The grounding of almost all the world’s airline fleets under the Covid-19 pandemic has left airlines with very little if any revenue to cover its massive fixed costs. This has caused huge damage that in many cases will be irreparable to airlines. Here is just a sample:

  • Airbus has 60 new aircraft stored with no buyers in sight, including 18 A350s. They expect to have a minimum of 8,000 planes parked by September. With an average of 5.8 crews per plane (medium and long haul combined), this will make more than 90,000 unemployed pilots worldwide.
  • Etihad has cancelled 18 A350 orders, 10 A380 and 10 Boeing 787. It has laid off 720 employees.
  • Emirates has announced a massive cut in its 60,000 workforce. It has grounded 38 of its A380s and cancelled all orders for the Boeing 777x (150 aircraft, the largest order of its kind). The company has asked all employees over the age of 56 to retire.
  • Virgin has dismissed more than 3,000 people, including 600 pilots.
  • Virgin Australia has filed for bankruptcy.
  • Air Mauritius is under Administration
  • South African Airways is under business rescue and not paying salaries.
  • Finnair has returned 12 planes and fired 2,400 people.
  • YOU has parked 22 aircraft and fired 4,100 people.
  • Ryanair has parked 113 planes and furloughed 900 pilots at the moment, plus 450 in the coming months.
  • Norwegian has stopped all long-haul flying. The 787s were returned to the lessors and it is selling a large share to the Chinese.
  • SAS has returned 14 planes and laid off 520 pilots.
  • Wizzair returned 32 A320s and laid off 1,200 employees, including 200 pilots, another wave of 430 planned layoffs in the coming months. The remaining employees will have their salaries reduced by 30%.
  • IAG (British Airways) parked 34 aircraft. All employees over 58 have to retire.
  • The airline has also abandoned the acquisition of Air Europa (and will pay compensation of € 40 million for that).
  • IAG (Iberia) has parked 56 planes.
  • Luxair has reduced its fleet by 50% (and associated redundancies)
  • CSA has abolished its long-haul sector and maintains only 5 medium-haul aircraft.
  • Eurowings has gone bankrupt.
  • Brussels Airlines has reduced its fleet by 50% (and associated redundancies).
  • Lufthansa plans to park 72 aircraft
  • Hop is studying the possibility of reducing its fleet and personnel by 50%.

Leave a Reply