Airline industry index
Liquidity is crucial for airlines to overcome COVID-19 pandemic. As the airline industry faces a dramatic drop in travel demand amid the spread of the coronavirus globally, this week’s chart of the week focusses on whether airlines have enough cash in their balance sheets to absorb this cash flow shock. The liberalization of the airline industry has yielded spectacular results. As a Bloomberg article notes, by 2010, the number of U.S. air travelers had more than tripled to 721 million, from 207.5 million in 1974.