LONG-HAUL AIR TRAVEL RECOVERY STILL NOT LIFTING OFF

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Emirates airline reported a $6-billion loss in its most recent quarter and Germany’s Lufthansa said it will purge another 10,000 workers, in addition to 26,000 already gone, as long-haul air travel still waits for its economic recovery. 

The two carriers are particularly dependent on international travel, especially by businesses.

While domestic air travel, mainly leisure trips, have regained about 80 percent of their pre-crisis volume, international flights are languishing at 27 percent of their 2019 levels, according to European plane-maker Airbus.

Cross-border travel remains hampered by government-imposed travel restrictions, corporate penny-pinching, and persons’ lingering fears of the virus and its evolving array of variants, making them reluctant to be sealed in a tube with strangers for hours at a time.

Emirates, the most-used airline by international travelers before the shutdown, shed about $2.1 billion in costs in its operating year that ended in March by renegotiating contracts with suppliers and streamlining operations and locations, the carrier said.

Its passenger volume crashed by 88 percent to 6.6 million during the period, cutting revenue by a third to $9.7 billion and forcing the carrier’s first stretch of red ink in 30 years.

In response, Emirates jettisoned 31 percent of its workforce, bringing the number to 75,145 worldwide.

Lufthansa’s payroll cuts are part of its plan to save €3.5 billion by 2024, with half of the savings coming this year, the company said.

The German carrier expects to fly at 40 percent of capacity by the end of this year, compared to 30 percent this month.

The gains will come from short trips around Europe, mostly with leisure travelers, with business travel not rising to pre-crisis levels until some time in 2024, Lufthansa predicted.

TREND FORECAST: We have been forecasting for nearly a year that business class, the airlines’ most profitable sector, would decline even after unrestricted air travel resumed. And now, with increasing demands for vaccine passports, the number of potential flyers will decline. 

Moreover, to build their bottom line, businesses will slash travel budgets. With more people working remotely and the rapid COVID War acceleration of the new Zoom world, long-distance meetings will be effectively conducted.

In addition, should nations continue to demand vaccine passports, COVID testing and quarantining travelers, the amount of people taking flights will decline, thus putting more pressure on airline’s bottom line. 

3 Comments
  1. Craig Bradley 3 months ago

    INTERNATIONAL TRAVEL MAINTAINS COVID HOOPS AND HURDLES.

    https://mx.usembassy.gov/u-s-citizen-services/covid-19-information/

    https://www.mexicancaribbean.travel/covid-19/covid-19-tests/

    All U.S. bound airline passengers must have a recent Covid test result (negative) taken within 3 days of departure from any foreign nation, including Mexico or Canada. This applies even if you have been vaccinated and can prove it with a paper or digital certificate. You must have all our papers in order to leave or return home by airline. Alternatively, you can take a mule or burro across the border or try walking across the bridge at a U.S. border station, as in the movie “No Country for Old Men”.

    However, you might still be able to fly down to Mexico with no recent Covid test but previously, it was required by some airlines and or destination airports, as well. I would not bet on it at this point. Safe to assume you need the recent Covid test ( <72 hours from departure) anytime you get on a plane in the international wing of an airport.

    Thus you have ongoing extra travel compliance requirements due to Covid fears which could add uncertain to your travel plans and/or require a longer lay-over, as well. Extra hoops and hurdles are here to stay for the foreseeable future in any case for international air travelers.

  2. lvblasiotti 3 months ago

    If people stop traveling those restrictions will end. This is the biggest scam…plandemic in the history of the world. The entire world has been bamboozled. Last year I told some people that it was a scam…they thought I was out of it…I wonder what they now think. The lawyers have to come out of their hiding places and pursue the blatant violation of the Nuremberg Code. It is amazing to me how the entire world has been bamboozled, especially the USA, where IVERMECTIN has been poo-pood as were other solutions, as was the deadening silence by government, especially the CDC on HOW TO IMPROVE YOUR IMMUNE SYSTEM. It is not a wonder that the annual flu is down to nothing while the horrible COVID is up.
    Will Rogers once said: “Everything is changing. People are taking their comedians seriously and the politicians as a joke.” It would appear, more and more as we look at historic and current event, that most politicians now and in the past were/are basic-ly criminals in suits. When will the people wake up and demand change, i.e., that they follow the will of the people. It seems that parents are not attending school board meetings in groups instead of as individuals. Good for them.

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