Royal Air Maroc Faces Bankruptcy Risk Amid $1.6 Billion Loss, AFRAA Report Warns

11 June 2020 – byBladi.net · 1 min read

The recent report of the African Airlines Association (AFRAA) on some Maghreb companies presents the critical financial situation of the airlines in the region. Royal Air Maroc, with more than 1.6 billion in losses equivalent to the revenue shortfall per seat, is at risk of bankruptcy by the end of June if the state does not provide the necessary financial support.

At the top of the most affected companies in the Maghreb, RAM far exceeds Algeria, which recorded 800 million in losses, and Tunisair, which totals 500 million in losses, reports financialafrik.com.

Since the beginning of the crisis, RAM has reported a daily loss of 50 million dirhams (5 million euros). Its social plan has been facing difficult negotiations with pilots and other staff categories for several months.

For AFRAA, 95% of the continent’s air fleet is grounded. If the governments of these countries do not support their airlines, as recommended by the organization, they risk finding themselves insolvent by the end of June.

For Abderrahmane Berthé, Secretary General of AFRAA, the airlines could resume their activities if they received $2.5 to $3 billion in financial aid or tax and fee relief.

Category: Economy

Keywords:

Royal Air Maroc Coronavirus in Morocco (Covid-19)