“Airlines are on the brink of bankruptcy — what happens to your voucher, travel miles and airline credit card if they go belly up?”
May 13, 2020
“Carriers’ stocks have tanked in response. Warren Buffett recently revealed that Berkshire BRK.A, -1.37% had sold off all of its holdings in the airline sector, including stock in Delta DAL, -6.99%, American Airlines AAL, -6.94% and Southwest LUV, -5.76%.
Boeing BA, -3.21% Chief Executive David Calhoun suggested that a major airline will “most likely” go under as a result of the coronavirus pandemic during a recent appearance on NBC’s “Today” show. He added that it could take three to five years for the industry to recover to the passenger levels seen before the pandemic…
Depending on how the bankruptcy is handled, ticket-holders may or may not be in the clear. Often companies use bankruptcy as a legal tool to restructure its debts — in other words, an airline that goes bankrupt won’t necessarily be liquidated…”