Business & Investment

Omicron recedes expectations for a recovery in the aviation industry

A new travel ban caused by a variant of the Omicron coronavirus has slowed the initial recovery of international flights, causing delays and headaches in some areas, according to airline and airport officials.

New test rules and the surge in border closures have raised concerns ahead of the important Christmas travel season, but some airline bosses said they hope the retreat will be short-lived.

Global airlines blame patchwork for rule changes against falling demand for international travel, important for returning to profits following a pandemic-related loss in 2020’s sharp coronavirus disease 2019 (COVID-19) Did.

American Airlines’ next CEO, Robert Isom, told Reuters that the recovery in profitability of Texas-based airlines is conditioned on a full recovery in travel demand. Americans have the largest debt stock in the US aviation industry.

“If something happen [in the way], It only delays recovery, “he said.

He said the airline’s domestic business remains strong, but the new travel ban has curbed demand in some international markets.

Following last week’s sold-out, airline stock prices have recovered to some extent. Investors are fascinated by anecdotal evidence that suggests that new variants may not be as deadly as initially feared, but for weeks to see their impact on the pandemic process. It can take several months in some cases.

A UN agency specializing in aviation and tourism called for a travel ban on Tuesday corresponding to a new coronavirus variant imposed only as a last resort.

Japan bans foreigners, the United States requires a COVID-19 test 24 hours before flight, and travelers to Singapore must be tested daily for 7 days upon arrival.

Campbell Wilson, CEO of Singapore Airlines’ budget scholar Scoot, said at an event at the CAPA Center for Aviation, a market intelligence company in Sydney, “opening is accelerating to Omicron.” Said.

“Since then, we’ve basically seen a pause,” Wilson added.

Airlines and travel agencies expect higher immunization rates and new drugs to make a difference.

“This is not the spring of 2020,” Booking Holdings Inc. Glenn Fogel, Chief Executive Officer of the company, said. “Absolutely not.”

However, Sue Carter, head of travel tech company Travelport’s Asia Pacific region, said he saw some searches decline weekly, and traveler confidence was closely linked to government announcements. He added that he tends to be.

The ever-changing rules cause confusion
A spokesperson for the International Airports Council (ACI) World of the Trade Group said the global patchwork of travel rules is challenging the operation of the airport and called for better coordination between countries.

At Calgary International Airport, routes on arrival are longer than they were before the introduction of Canada’s plan to finally test all passengers arriving from countries other than the United States last week, an airport spokesman said. rice field.

The Public Health Agency of Canada did not immediately respond to requests for comment.

A Reuters reporter who departed from a U.S. airport to Montreal last week must repeatedly notify airlines of the latest information that Canadian passengers returning abroad within 72 hours do not require COVID-19 testing. It didn’t become.

The rules introduced after Omicron’s discovery are the latest in a “state of constant change,” said Leslie Diaz of Unifor, a union representing Air Canada’s customer service workers.

In Australia, fully vaccinated travelers to Sydney and Melbourne must be quarantined at home or in a hotel for 72 hours upon arrival. Due to its previous policy of not being isolated, Hawaiian Airlines has added five Honolulu-Sydney flights per week starting this month. The original plan was three flights, but CEO Peter Ingram said.

Qantas CEO Alan Joyce said he hopes that the 72-hour quarantine requirement will be lifted once he becomes familiar with Omicron.

“I’m still not sure if this is a working spanner or a fly in an ointment,” said Sub-Hasmenon, Secretary of the Association of Asia Pacific Airlines, about Omicron. “From what we’re looking at right now, it still looks like a good ointment fly to use.” — Jamie Fried, Allison Rampart When Rajesh Kumar Singh / Reuters

Omicron recedes expectations for a recovery in the aviation industry

https://www.bworldonline.com/omicron-sets-back-airline-industrys-recovery-hopes/ Omicron recedes expectations for a recovery in the aviation industry

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