Airlines in flight for cash as fight for survival becomes the reality

European airlines have moved further into survival mode, with EasyJet grounding its entire fleet and temporarily laying off 4,000 cabin crew; and Aer Lingus owner IAG altering its lending terms to give it wriggle room to weather the storm caused by the Covid-19 outbreak.

IAG — which also owns British Airways and Spanish carriers Iberia and Vueling — has extended its revolving credit facility by a year to June 2021. Just under $1.4bn (€1.27bn) is available under the facility, and IAG’s total cash and undrawn lending facilities currently total €9.3bn.