To bail out or not: Governments decide whether to aid Asia’s embattled airlines

Few sectors have been hit harder by the economic fallout of the pandemic than the airline industry. Asia is expected to see the steepest drop-off in passenger revenue, with airlines in the region forecast to lose an estimated $113 billion this year. Air traffic there plunged 98% in April compared to the year before.

“Governments need to ensure that airlines have sufficient cash flow to tide them over this period,” Conrad Clifford, regional vice president for Asia-Pacific for IATA, said in an April 3 statement.

Clifford called for “direct financial support” from governments to airlines, loan facilitation, and tax and