An $85 Billion Airline Rescue May Only Prolong the Pain

Governments have devoted more than $85 billion to propping up airlines after the coronavirus pandemic wiped out travel demand and grounded jetliner fleets. But with job cuts racking up, a debate is raging over whether opening the spigot will do more than merely delay the inevitable.

Global air traffic may only get back to 50% to 60% of usual levels by year-end, leading the International Air Transport Association to suggest the recovery will be a tortuous one. Given the financial impact and safety measures likely to be required, it could be three years before the industry sees a sustainable revival, according to Delta Air Lines Inc. Chief Executive Officer Ed Bastian. Billionaire Warren Buffett, who had been the industry's most prominent investor, isn't waiting around. His Berkshire Hathaway Inc. exited its stakes in Delta and the three other big U.S. airlines.