Airlines are piling on more debt as surging coronavirus cases force travelers to cancel plans and stay home.
The industry’s outstanding debt has jumped 23% since 2020 to $340 billion, according to data compiled by Bloomberg. So far this year, global air carriers have sold $63 billion in bonds and loans.
It’s more evidence that the industry faces a bumpy road ahead, with many border restrictions still in place and the high-season of summer vacations in the U.S. and Europe coming to an end. EasyJet Plc and Japan Airlines Co. announced new fundraising plans this month to help them weather the prolonged pandemic.
Sky-High Debt
Global airlines’ debt pile grew to $340 billion as pandemic persists
Source: Bloomberg
“The spread of the Delta variant may lead to other countries imposing tougher quarantine rules on visitors,” said Susannah Streeter, a senior investment and markets analyst at Hargreaves Lansdown.