The world's airlines are in danger

As many as half of the world's 800 airlines are in danger of going out of business because of the Covid-19 pandemic. U.S. airlines are not in danger, yet.

iHeartMedia aviation expert Jay Ratliff says the international carriers operate on thin margins.

"And if it's something that goes into the lucrative summer travel season of June, July and August, when airlines make a tremendous amount of money, many of these airlines around the world may cease to operate."

Ratliff says the U.S. carriers have cash stockpiles to last at least a few months. He had a flight scheduled and was worried about its status.

"I sent Delta Airlines a Facebook message, 'hey here's my six digit confirmation number, what options do my wife and I have?' and they got back to me in a day or so."

Ratliff says some flyers are treating this as a buyer's market and are looking for deals when the crisis subsides.

"They're offering some pretty good deals and a lot of people that are planning well in advance are taking advantage of that, of course also buying the trip cancellation insurance that goes along with it just to kind of protect themselves, just in case."

Ratliff says until we reach the "pivot point" where the Coronavirus is contained or nearly contained travelers will continue staying home. Hotels, car rentals, restaurants and tens of thousands of support businesses are also threatened.


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