$1 Billion in Two Weeks: Hedge Funds Capitalise on UK Airlines Gridlock Over COVID-19 – Report

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Late last week, the trade body Airlines UK warned that the ongoing coronavirus pandemic may do irreparable damage to the country’s aviation industry if it does not get emergency support from the government.

In the past two weeks, hedge funds have made over £1 billion ($1.16 billion) as they bet on the meltdown of major UK airlines amid the COVID-19 outbreak, The Telegraph reports.

The developments come after the trade body Airlines UK warned of possible damage to the country’s aviation industry if it is does not get a shot in the arm from the government.

This followed British Airways warning its employees that the UK’s aviation industry is facing a “crisis of global proportions” due to the COVID-19 outbreak, which is ostensibly even worse than one caused by the SARS virus or the 9/11 attacks.

The air carrier’s head Alex Cruz, for his part, cautioned that British Airways will ground flights “like never before”, amid staff lay-offs.

Europe’s largest short-haul airline, Ryanair in turn said that it would reduce capacity by 80 percent in April and May, while EasyJet stated that it could ground the majority of its fleet, and that the government should step in and provide UK airlines with financial aid.

The Centre for Aviation, meanwhile,

Sourse: sputniknews.com

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