Almost half of the world’s leading Passenger Airlines were in financial danger BEFORE the coronavirus exploded out of a Wuhan seafood market and spread around the world, according to new research from market analysts Plimsoll.
Flybe, the UK regional carrier is the latest high-profile airline to collapse with COVID-19 in the frame as one of the main culprits for its demise. While demand is falling across many routes as the virus stokes traveler nervousness, Flybe has failed to make a profit since 2016. If it wasn’t coronavirus another “unforeseen event” could have brought it down.
Leading market analysts Plimsoll have produced their latest financial performance report examining the health and future well-being of the world’s 330 leading Passenger Airlines. Unfortunately, the short term looks extreme. Falling demand caused by the novel virus could be the final straw for many major carriers:
· 1 in 3 of the world’s leading Airlines posted a loss in their latest year
· Almost half of those making a loss have been doing so for multiple years
· Plimsoll has rated HALF of the airlines included in the analysis as DANGER
· 10% of the Airlines Plimsoll vetted have seen their value plummet by 25%
The business news is set for a growing number of CEOs explaining to the press how coronavirus has killed their airline.
However, these unforeseen events merely accelerate the demise of companies that didn’t make the hard decisions at the right time.
Unless you know your airline has a plan to fall back on in the downtimes, your business model has to be robust enough to keep you flying through the worst-case scenario.
The Plimsoll Analysis produces financial health ratings on each of the world’s leading airlines. Such is the predictive power of the model used to analyze each company, 9 out of 10 previous failed businesses were rated as DANGER by Plimsoll 2 years prior to their demise.
With the Plimsoll Analysis rating half of the world's leading airlines as DANGER – the market needs to act now. For more information click here