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Rising inflation may aid debt-heavy aviation industry: IATA chief

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Tay Peck Gek

Tay Peck Gek

Published Tue, May 17, 2022 · 05:50 AM
    • Willie Walsh, director general of the International Air Transport Association, argued that high inflation could be a help to the aviation industry which has taken on a lot of debts to stay afloat during the pandemic.
    • Willie Walsh, director general of the International Air Transport Association, argued that high inflation could be a help to the aviation industry which has taken on a lot of debts to stay afloat during the pandemic. Kelvin Chng

    RISING Inflation, a growing concern globally, could actually “help” the debt-laden aviation industry as it reduces the real cost of debt, said Willie Walsh, the director-general of the International Air Transport Association (IATA).

    He said: “You could argue that high inflation, given that the industry has taken on a lot of debt, could be turned into a positive (factor) because it reduces the real cost of debt. Inflation is always seen as a help when you have a lot of debt”.

    He was responding to questions at a media roundtable on Monday (May 16) on which factors from elevated oil prices, inflation, rising interest rates or the spectre of a recession were of the greatest concern to the aviation industry. 

    Aviation

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