Eurocontrol has confirmed carriers will be able to defer the payment of their share of the up to £1.1 billion in fees due to Europe’s air traffic management industry over the coming months.

It said with the “dramatic” reduction in operations likely to continue for a number of weeks, the airline industry had sought Eurocontrol’s support to mitigate “its sudden and significant cash flow crisis”.

Director general Eamonn Brennan said he was pleased member states had approved what he described as an “essential measure”. “It will provide much-needed liquidity support,” said Brennan.

“Many airlines contacted Eurocontrol to confirm they would not be in a position to facilitate their next payments. With traffic down 90%, our member states have clearly recognised the shared challenge.

“This payment deferral will ease the immediate burden on airlines and it provides certainty on financial planning to both airlines and air navigation service providers on when payments will be made after the crisis has abated.”

The European Regions Airline Association (Era) has welcomed the decision, which it said had become a “matter of urgency” with February’s €518 million ATC fees bill invoiced with airlines mid-March and due for payment by 13 April. This payment, it confirmed, has been deferred to November.

Era director general Montserrat Barriga said: “There has been an urgent need to mitigate the devastating effects of this significant and unprecedented liquidity crisis. This swift action taken by the Eurocontrol member states will provide airlines with more flexibility as they financially plan for the future.

“Aviation will be instrumental in Europe’s economic recovery and financial relief measures are needed urgently to ensure our airlines can continue to operate, providing connectivity, once we move towards recovery. Today’s announcement by Eurocontrol will certainly aid our airlines in this recovery process.”

Transport secretary Grant Shapps added: "This is a very difficult time for airlines, but they continue to provide a vital service bringing UK citizens home and transporting vital medical supplies.

"Deferring these charges will further help airlines, on top of the unprecedented package of economic measures recently announced by the chancellor, to support businesses through this challenging period."