Global airlines are adding capacity at a faster rate than international travel demand growth in August and September, placing further pressure on cash flows and underscoring the urgent need for continued relief measures by governments.
Closed borders, imposed quarantines and uncoordinated governments policies are among the major barriers to travel, making it more difficult for airlines to plan ahead for flight schedules, Brian Pearce, the chief economist of the International Transport Association (Iata) told reporters on Tuesday.
The gap between bookings and airline schedules is "widening and that gap unfortunately means airlines are probably burning cash as a result of the potentially disappointing slow improvements in demand," Mr Pearce said. "That leaves airline finances in a relatively fragile situation as governments are starting to pull back on the support given."
In July this year, global airlines recorded an 80 per cent drop in passenger travel demand compared to July 2019 while load factors, a measure of how well a carrier is filling available seats, fell to a record low of 58 per cent.
Middle East airlines posted a 93.3 per cent annual traffic decline in July, compared with a 96.1 per cent demand drop in June, Iata said in its monthly report on Tuesday. Capacity tumbled 85.6 per cent and load factor fell 43.4 percentage points to 38 per cent.
"Borders are largely closed and governments' management of travel restrictions is so unpredictable and uncoordinated that people are still not flying," Alexandre de Juniac, director-general of Iata said on an online conference call.
"For the industry this is immensely frustrating, it is also frustrating for travellers...and it is tragic for the growing numbers of the unemployed whose livelihoods are being destroyed," he said.
Airlines worldwide are facing a loss of $84.3 billion (Dh309.5bn) this year, a 50 per cent cut in revenues and high fixed costs for aircraft and labour as the Covid-19 pandemic decimates air travel demand.
With four in five air travellers staying at home, governments reopening then closing borders or removing then re-imposing quarantines, consumers do not have confidence to make travel plans nor airlines to rebuild their schedules, Iata said.
While business confidence is more positive following the reopening of economies, the challenge is that consumers are feeling less confident as unemployment rates rise, which is reflecting in travel patterns, Mr Pearce said.
"The number of premium tickets are actually growing at a similar pace to the growth of economy tickets ... there might be some evidence that we're seeing some business travel albeit at relatively low levels," he said.
Iata is calling on governments to reopen borders, develop testing that reduces the risk of importing the virus and continue providing relief measures for airlines without increasing their debt burden, Mr de Juniac said. Iata advocates for Covid-19 testing that is reliable, scaleable, adaptable, more comfortable for travellers, and not reliant on complicated machinery or highly-trained personnel.
Governments have had an "uneven" approach to financial relief packages, with US and North American airlines well supported while those in major emerging markets such as Africa and Latin America have seen very little support, Mr Pearce said.
Know your Camel lingo
The bairaq is a competition for the best herd of 50 camels, named for the banner its winner takes home
Namoos - a word of congratulations reserved for falconry competitions, camel races and camel pageants. It best translates as 'the pride of victory' - and for competitors, it is priceless
Asayel camels - sleek, short-haired hound-like racers
Majahim - chocolate-brown camels that can grow to weigh two tonnes. They were only valued for milk until camel pageantry took off in the 1990s
Millions Street - the thoroughfare where camels are led and where white 4x4s throng throughout the festival
Groom and Two Brides
Director: Elie Semaan
Starring: Abdullah Boushehri, Laila Abdallah, Lulwa Almulla
Rating: 3/5
Superpower%20
%3Cp%3E%3Cstrong%3EDirector%3A%20%3C%2Fstrong%3ESean%20Penn%2C%20Aaron%20Kaufman%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3ERating%3A%20%3C%2Fstrong%3E3%2F5%3C%2Fp%3E%0A
The National's picks
4.35pm: Tilal Al Khalediah
5.10pm: Continous
5.45pm: Raging Torrent
6.20pm: West Acre
7pm: Flood Zone
7.40pm: Straight No Chaser
8.15pm: Romantic Warrior
8.50pm: Calandogan
9.30pm: Forever Young
Ten10 Cricket League
Venue and schedule Sharjah Cricket Stadium, December 14 to 17
Teams
Maratha Arabians Leading player: Virender Sehwag; Top picks: Mohammed Amir, Imad Wasim; UAE players: Shaiman Anwar, Zahoor Khan
Bengal Lions Leading player: Sarfraz Ahmed; Top picks: Sunil Narine, Mustafizur Rahman; UAE players: Mohammed Naveed, Rameez Shahzad
Kerala Kings Leading player: Eoin Morgan; Top picks: Kieron Pollard, Sohail Tanvir; UAE players: Rohan Mustafa, Imran Haider
Pakhtoons Leading player: Shahid Afridi; Top picks: Fakhar Zaman, Tamim Iqbal; UAE players: Amjad Javed, Saqlain Haider
Punjabi Legends Leading player: Shoaib Malik; Top picks: Hasan Ali, Chris Jordan; UAE players: Ghulam Shabber, Shareef Asadullah
Team Sri Lanka Cricket Will be made up of Colombo players who won island’s domestic limited-overs competition
White hydrogen: Naturally occurring hydrogen
Chromite: Hard, metallic mineral containing iron oxide and chromium oxide
Ultramafic rocks: Dark-coloured rocks rich in magnesium or iron with very low silica content
Ophiolite: A section of the earth’s crust, which is oceanic in nature that has since been uplifted and exposed on land
Olivine: A commonly occurring magnesium iron silicate mineral that derives its name for its olive-green yellow-green colour
More from Rashmee Roshan Lall
The five pillars of Islam
What are the GCSE grade equivalents?
- Grade 9 = above an A*
- Grade 8 = between grades A* and A
- Grade 7 = grade A
- Grade 6 = just above a grade B
- Grade 5 = between grades B and C
- Grade 4 = grade C
- Grade 3 = between grades D and E
- Grade 2 = between grades E and F
- Grade 1 = between grades F and G
The specs
AT4 Ultimate, as tested
Engine: 6.2-litre V8
Power: 420hp
Torque: 623Nm
Transmission: 10-speed automatic
Price: From Dh330,800 (Elevation: Dh236,400; AT4: Dh286,800; Denali: Dh345,800)
On sale: Now
Learn more about Qasr Al Hosn
In 2013, The National's History Project went beyond the walls to see what life was like living in Abu Dhabi's fabled fort:
2025 Fifa Club World Cup groups
Group A: Palmeiras, Porto, Al Ahly, Inter Miami.
Group B: Paris Saint-Germain, Atletico Madrid, Botafogo, Seattle.
Group C: Bayern Munich, Auckland City, Boca Juniors, Benfica.
Group D: Flamengo, ES Tunis, Chelsea, Leon.
Group E: River Plate, Urawa, Monterrey, Inter Milan.
Group F: Fluminense, Borussia Dortmund, Ulsan, Mamelodi Sundowns.
Group G: Manchester City, Wydad, Al Ain, Juventus.
Group H: Real Madrid, Al Hilal, Pachuca, Salzburg.
Fixtures (all in UAE time)
Friday
Everton v Burnley 11pm
Saturday
Bournemouth v Tottenham Hotspur 3.30pm
West Ham United v Southampton 6pm
Wolves v Fulham 6pm
Cardiff City v Crystal Palace 8.30pm
Newcastle United v Liverpool 10.45pm
Sunday
Chelsea v Watford 5pm
Huddersfield v Manchester United 5pm
Arsenal v Brighton 7.30pm
Monday
Manchester City v Leicester City 11pm
UFC Fight Night 2
1am – Early prelims
2am – Prelims
4am-7am – Main card
7:30am-9am – press cons
MATCH INFO
Uefa Champions League semi-final, second leg result:
Ajax 2-3 Tottenham
Tottenham advance on away goals rule after tie ends 3-3 on aggregate
Final: June 1, Madrid
