COVID-19: government aid for Latin airlines still patchy

As the duration of the COVID-19 pandemic is still unclear, airlines worldwide remain in survival mode working feverishly to sustain and grow their liquidity levels while simultaneously attempting to stem cash outflows.

IATA has forecast that Latin America's traffic will fall by 49% year-over-year in 2020 as a result of COVID-19, with a USD18 billion drop in passenger revenue. With very low to zero revenues flowing in, it is a delicate balance to strike, and airlines are stressing to their respective governments the pressing need for financial assistance, largely in the form of loans.

Governments have offered varying responses to the pleas of airlines - particularly in Latin America.

Among the three largest aviation markets in the region - Brazil, Mexico and Colombia - the reactions to calls for support have differed significantly, with Brazil appearing to offer the most pronounced forms of financial reinforcement.