aviation

The plan would include about US$500 billion in loans and assistance for larger companies, as well as states and cities, according to the latest drafts being circulated. But the aid comes with strings attached after pressure from Democrats.

Cargo rates have risen over 10% in recent weeks as some companies are prepared to pay more to ship goods after drastic cuts in passenger flights left airlines with less capacity for cargo.

Moody’s sees the passenger airline sector as one of the most adversely affected industries given its exposure to travel restrictions and sensitivity of consumer demand and sentiment.

“Make no mistake – we expect the pace of this deterioration to accelerate," says SIA CEO Goh Choon Phong.

Takeoff and landing slot rules mean airlines must fill at least 80% of their slots in any given season, or risk losing their allocation next time round.

Airlines in the Asia Pacific region are expected to be hit the hardest.

Although SATS's 4QFY2020 earnings are likely to fall by a “larger degree, analysts choose to remain optimistic on a possible comeback after virus fears ease.

UOB Kay Hian has downgraded the aviation sector to “underweight” as rising fears of the novel coronavirus outbreak have led to numerous flight cancellations and capacity cuts.

The allegations came to light on Friday when Airbus agreed to a record US$4 billion ($5.5 billion) settlement with France, Britain and the United States.