Royal Jordanian Has Cash Till End of June, Seeks Tax Breaks

(Bloomberg) -- Royal Jordanian Airline has enough cash to survive until the end of June and plans to ask the government for tax breaks, as lockdowns caused by the coronavirus pandemic continue to halt airline operations around the globe.

“I don’t think it’s time to talk about losses, but to talk about cash preservation to survive,” Chief Executive Officer Stefan Pichler said in an interview with Bloomberg TV. “We can last for a couple of months.”

Royal Jordanian doesn’t plan to ask the government for cash, Pichler said, adding that the airline is seeking tax breaks and payment deferrals.

Airlines have been hit with an unprecedented near-total shutdown of travel as the coronavirus crisis sweeps across continents and governments close borders and order populations to stay at home. About 70% of global carrier capacity is idled and the industry could burn through $61 billion in the second quarter alone, according to the International Air Transport Association.

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