Coronavirus empties airlines' cash drawers, knocks $157 billion off share values
By Patturaja Murugaboopathy
(Reuters) - Global airlines are fast running out of cash after cutting capacity by 90% or even grounding entire fleets due to the broad travel restrictions to contain the spread of the coronavirus, calling into question the survival of several firms.
The outbreak of the flu-like virus has wiped 41%, or $157 billion, off the share value of the world's 116 listed airlines, with many using up their cash so fast they can now cover less than two months of expenses, a Reuters analysis showed.
The industry's main global body, the International Air Transport Association (IATA), estimates the sector needs up to $200 billion in government support to help airlines survive.
The following charts show airlines' liquidity ratios, and their changes in cash and debt levels against core earnings.
(GRAPHIC: Airlines' change in cash levels - https://fingfx.thomsonreuters.com/gfx/mkt/13/3537/3498/cash-dashboard.jpg)
(GRAPHIC: Airline firms' current ratios - https://fingfx.thomsonreuters.com/gfx/mkt/13/3538/3499/CE-dashboard.jpg)
(GRAPHIC: Airline firms' net debt-to-EBITDA ratios - https://fingfx.thomsonreuters.com/gfx/mkt/13/3540/3501/Netdebttoebitda.jpg)
(GRAPHIC: Cash on hand by region - https://fingfx.thomsonreuters.com/gfx/mkt/13/3579/3540/cash%20on%20days%20by%20region.jpg)
(GRAPHIC: Airline firms' debt-to-equity ratios - https://fingfx.thomsonreuters.com/gfx/mkt/13/3539/3500/De-dashboard.jpg)
(GRAPHIC: Airline market cap - https://fingfx.thomsonreuters.com/gfx/mkt/13/3588/3549/airline%20market%20cap.jpg)
(Reporting By Patturaja Murugaboopathy; Additional Reporting by Gaurav Dogra in Bengaluru; Editing by Miyoung Kim and Tom Hogue)