IATA: Onboard social distancing would make most airlines financially unviable

IATA stated (08-May-2020) social distancing restrictions onboard aircraft would make most airlines financially unviable. Social distancing would reduce available seat capacity by 33% to 50%, depending on aircraft type and configuration. For the entire global fleet, IATA estimates social distancing would reduce bookable seat capacity to 62% of normal capacity. Based on a sample of 122 airlines, the average break even load factor is 77%. Only four airlines in the sample had break even load factors of less than 62% and the remaining airlines would become loss making at load factors below 62%, using current pricing policies. Due to the seasonality of demand, IATA estimates airlines could fill about 85% of the 62% bookable seat capacity, or 53% of seats. Under this assumption, only two charter carriers out of the 122 sampled airlines would break even. IATA concluded that airlines would likely need to increase airfares just to break even, but raising airfares in a weak demand environment is unlikely to be possible. [more - original PR]