GLOBAL airlines are piling on more debt as surging coronavirus cases force travelers to cancel plans and stay home.

The industry’s outstanding debt has jumped 23 percent since 2020 to US$340 billion, according to data compiled by Bloomberg. So far this year, global air carriers have sold US$63 billion in bonds and loans.

It’s more evidence that the industry faces a bumpy road ahead, with many border restrictions still in place and the high-season of summer vacations in the United States and Europe coming to an end.

EasyJet Plc and Japan Airlines Co. announced new fundraising plans this month to help them weather the prolonged pandemic.

“The spread of the Delta variant may lead to other countries imposing tougher quarantine rules on visitors,” said Susannah Streeter, a senior investment and markets analyst at Hargreaves Lansdown.

Many carriers are returning to the bond market after last year’s dash-for-cash when the pandemic first struck. (SD-Agencies)