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PARIS: Airlines are facing a long and harsh winter after a highly anticipated upswing in the coronavirus crisis failed to materialize, prompting savage cost-cutting programs and new calls for government support.
“We are in a race against time. The key is to have the cash … we need to move fast, very fast, ”said Stephane Albernhe, managing partner at Archery Strategy Consulting.
Airline revenues plummeted 80 percent in the first six months of the year, according to industry body IATA, but they still had fixed costs to cover: crew, maintenance, fuel, airport taxes and now aircraft storage.
After a slight recovery in July when coronavirus restrictions were eased, traffic fell again in September, while bookings for the winter season, which begins October 25, were down 78 percent compared to the year. above, which promises more difficulties to come.
One of the biggest disappointments has been the absence of highly lucrative business class travelers who now prefer to rely on teleconferencing rather than risk contracting the virus.
Repeated efforts to assure passengers that air travel is safe failed to make much of a difference, while government restrictions, including quarantines of up to 14 days for returning passengers, have only added to the pressures on battered women. airlines.
“The risk of getting Covid-19 during air travel is really very, very low,” says Dr. David Powell, IATA’s medical consultant.
Evidence, key to recovery
The industry as a whole hopes that the introduction of airport testing systems will restore passenger confidence and reduce, if not completely eliminate, the need for harmful quarantine regimes.
Test systems already exist at several major airports around the world and on Friday France announced that it would introduce rapid antigen-based tests by the end of the month.
“We are going to launch these tests at airports, especially for departures to the United States or Italy and for arrivals from countries on the red list (of high infection rates),” French Transport Minister Jean-Baptiste Djebbari told CNews TV. channel.
“That way we will not have more people reaching French territory without being tested,” he added.
Meanwhile, Hong Kong and Singapore have announced that they plan a “travel bubble” to allow unrestricted flights.
Testing can help, but given the damage already done and the likelihood of more to occur, IATA continues to press the alarm bell, seeking more help from the government to keep airlines afloat until there is at least something back to life. The normality.
So far, IATA estimates that governments have provided $ 160 billion in aid, loans, and tax breaks for airlines to cover current costs.
But after a disastrous summer, usually the busiest part of the year when they pile up their cash reserves, airlines won’t be able to do so during the winter, IATA Director Alexandre de Juniac repeatedly warned.
Earlier this month, United Airlines temporarily laid off 13,000 employees while waiting for politicians in Washington to distribute a new coronavirus aid package.
Low-cost pioneer Ryanair, which prides itself on not applying for state aid, announced Thursday that it will cut its already reduced winter program by a third.
Other airlines are thinking in entirely new angles to boost business, with companies in Asia offering “flights to nowhere” – short, circular trips for those desperate to fly again and willing to pay for the privilege.
Singapore Airlines even opened one of its giant A380 planes as a restaurant, while some began selling their food on board to nostalgic passengers, but on the ground.
It has been an “extraordinary” success, says Singapore Airlines.
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