The Prague Post - Problems soar for airlines despite pandemic recovery

EUR -
AED 4.314625
AFN 76.93948
ALL 96.739599
AMD 445.297082
ANG 2.102768
AOA 1077.180698
ARS 1678.923786
AUD 1.717354
AWG 2.116184
AZN 1.995653
BAM 1.962816
BBD 2.365354
BDT 143.663495
BGN 1.97272
BHD 0.442839
BIF 3477.048793
BMD 1.174679
BND 1.507349
BOB 8.132653
BRL 6.210877
BSD 1.174398
BTN 107.527469
BWP 15.609797
BYN 3.321759
BYR 23023.701467
BZD 2.362022
CAD 1.619847
CDF 2560.799435
CHF 0.928137
CLF 0.025946
CLP 1024.496297
CNY 8.180345
CNH 8.181672
COP 4274.585113
CRC 579.571559
CUC 1.174679
CUP 31.128984
CVE 110.660061
CZK 24.254706
DJF 208.763872
DKK 7.469499
DOP 74.115286
DZD 152.348982
EGP 55.267481
ERN 17.62018
ETB 183.251535
FJD 2.657713
FKP 0.874834
GBP 0.870567
GEL 3.15407
GGP 0.874834
GHS 12.774619
GIP 0.874834
GMD 86.341223
GNF 10287.771515
GTQ 9.007659
GYD 245.69249
HKD 9.158923
HNL 30.976875
HRK 7.534507
HTG 153.845962
HUF 381.839862
IDR 19781.823339
ILS 3.684409
IMP 0.874834
INR 107.579244
IQD 1538.492475
IRR 49483.338159
ISK 146.024034
JEP 0.874834
JMD 184.920962
JOD 0.832815
JPY 185.949255
KES 151.533412
KGS 102.725842
KHR 4726.875119
KMF 495.714717
KPW 1057.11835
KRW 1718.572434
KWD 0.36072
KYD 0.978707
KZT 594.271572
LAK 25375.403019
LBP 105164.216219
LKR 363.808811
LRD 216.664132
LSL 19.045439
LTL 3.468521
LVL 0.710551
LYD 7.474525
MAD 10.782895
MDL 20.046372
MGA 5419.092632
MKD 61.83734
MMK 2466.796661
MNT 4190.016543
MOP 9.432211
MRU 46.54637
MUR 54.17176
MVR 18.160014
MWK 2036.348492
MXN 20.543749
MYR 4.745875
MZN 75.073836
NAD 19.045439
NGN 1669.86386
NIO 43.211877
NOK 11.583277
NPR 172.05424
NZD 1.988948
OMR 0.451683
PAB 1.174337
PEN 3.941152
PGK 5.020925
PHP 69.337171
PKR 328.602122
PLN 4.197785
PYG 7914.287988
QAR 4.293035
RON 5.09223
RSD 117.40677
RUB 89.264978
RWF 1712.761525
SAR 4.404832
SBD 9.550391
SCR 16.51895
SDG 706.569603
SEK 10.580648
SGD 1.504752
SHP 0.881313
SLE 28.894029
SLL 24632.423012
SOS 669.95183
SRD 44.891527
STD 24313.476311
STN 24.587884
SVC 10.275685
SYP 12991.446466
SZL 19.041981
THB 36.508607
TJS 10.956756
TMT 4.123122
TND 3.428254
TOP 2.828344
TRY 50.833285
TTD 7.972496
TWD 37.110472
TZS 2989.556447
UAH 50.747771
UGX 4104.425837
USD 1.174679
UYU 44.900296
UZS 14236.886812
VES 407.42439
VND 30858.220698
VUV 141.556518
WST 3.250161
XAF 658.307181
XAG 0.01218
XAU 0.000239
XCD 3.174628
XCG 2.116556
XDR 0.819868
XOF 658.293121
XPF 119.331742
YER 279.925265
ZAR 18.958902
ZMK 10573.499151
ZMW 23.457646
ZWL 378.246045
  • RYCEF

    0.0700

    16.97

    +0.41%

  • SCS

    0.0200

    16.14

    +0.12%

  • CMSD

    0.0250

    24.025

    +0.1%

  • BCC

    0.1100

    85.12

    +0.13%

  • CMSC

    0.0460

    23.656

    +0.19%

  • RIO

    -1.3300

    87.51

    -1.52%

  • RBGPF

    0.0000

    84.04

    0%

  • NGG

    -0.5600

    80.29

    -0.7%

  • GSK

    0.4900

    48.56

    +1.01%

  • BTI

    0.4750

    58.185

    +0.82%

  • VOD

    0.3200

    13.92

    +2.3%

  • BCE

    0.1850

    24.695

    +0.75%

  • AZN

    1.0550

    91.595

    +1.15%

  • RELX

    -0.5250

    39.795

    -1.32%

  • JRI

    -0.0420

    13.678

    -0.31%

  • BP

    -0.5250

    35.395

    -1.48%

Problems soar for airlines despite pandemic recovery
Problems soar for airlines despite pandemic recovery / Photo: SEBASTIAN BORSERO - AFP/File

Problems soar for airlines despite pandemic recovery

Desperate to put the coronavirus pandemic behind them, airlines will hold talks on Sunday ahead of a potential summer of chaos with shortages and strikes that could threaten their recovery.

Text size:

While trade is roaring back to life, representatives from the aviation sector meeting for three days in Qatar have a packed agenda with multiple geopolitical crises including the war in Ukraine and the environment.

Cracks are already showing in the sector's recovery, though industry figures are optimistic about the future despite the issues.

In the past few weeks, delays and cancellations caused by a lack of staff at airports and strikes for better pay have wreaked havoc upon travellers.

The problems originate with the pandemic when airlines and airports laid off thousands of workers during its worst-ever crisis.

Now, they are scrambling for workers.

Passenger numbers dropped by 60 percent in 2020, and in 2021 it was still down 50 percent. Airlines lost nearly $200 billion over two years.

While some firms in the sector went bankrupt, others -- backed often by states -- have emerged from the pandemic with profits intact.

European airlines are excited about the prospect for a "beautiful summer", with some data showing booking rates higher than in 2019. In the United States, the domestic market has almost returned to pre-pandemic levels.

"Airlines are generating cash again, which is a real positive," said Willie Walsh, head of the International Air Transport Association, during a visit to Paris earlier this month.

The sector's morale was buoyant after "a very long and barren two years", he told reporters.

- 'Not up to speed' -

The International Air Transport Association (IATA), which represents 290 airlines accounting for 83 percent of global air traffic, will host its annual general meeting in Doha instead of Shanghai after record-high Covid case counts forced it to relocate the forum.

There will be cause for celebration during the event.

In terms of Revenue Passenger Kilometres (RPKs), a measure of total distance flown by paying passengers, activity in April reached 62.8 percent compared with the same month in 2019.

That was the best figure since March 2020.

Domestic routes, meanwhile, hit 74.2 percent in April, better than international markets which reached 56.6 percent compared with the same period in 2019.

After the Easter holidays fiasco at European airports, Walsh admitted "the system is not up to speed", but vowed the issues would be addressed.

He was hopeful despite the war in Ukraine and its wider impacts, surging inflation and record prices for jet fuel.

Fuel makes up 25 to 30 percent of companies' spending, and given the still-fragile state of airlines' balance sheets, higher costs will be passed on to customers to preserve their profits.

But the effects of Russia's war in Ukraine are already being felt.

European flights to Asia are constrained by long diverted routes to avoid Russian airspace after having slapped heavy sanctions on Moscow.

- Costly decarbonisation -

With inflation eroding people's purchasing power, higher costs could weaken demand at a time when companies need to make serious investments to cut their carbon dioxide emissions.

The IATA pledged last October to achieve net-zero carbon emissions by 2050.

The issue will be raised at a general assembly meeting of the International Civil Aviation Organization in the autumn, but a deal between countries is far from certain.

The IATA, which expects 10 billion air passengers annually by the middle of the century compared with 4.5 billion in 2019, refuses to consider any restrictions on growth in order to contain the effects of climate change.

Commercial air travel, often the target of environmental activists, is responsible for between 2.5 and 3 percent of global emissions.

Between "cleaner" planes and sustainable fuel, investment worth $1.5 trillion over 30 years is needed to improve the sector's environmental impact. The costs will be most likely handed down to the customer, again.

L.Hajek--TPP