As global airlines reel from the huge drop-off in business caused by the coronavirus, some face a second hit from this year’s historic plunge in oil prices. Some international airlines use financial instruments known as hedges to lock in years of fuel costs, a method aimed at smoothing out turbulence in the energy markets and providing guidance on one of the industry’s biggest expenses. However, the collapse in energy prices this year has left companies “over-hedged,” effectively meaning they have bought more insurance than they can now use. This is another trouble spot for airlines already slashing capacity to adjust to a new world of closed borders, empty planes and fearful travelers. Earlier this month, IAG took a E1.325b charge on overhedging. Air France-KLM, one of its main European rivals, has recorded a similar hit totaling E455m. And this week Singapore Airlines suffered the first annual loss in its near-48-year history, prompted in part by the equivalent of $638m in charges on oil hedges. The hits included nearly $500m in mark-to-market charges against what are now “surplus hedges” because it has slashed capacity for the financial year through March 2021. The rest stems from losses on hedge contracts that matured in the three months to end-March. The irony is cheaper oil should, in theory, be good news for airlines and other big consumers of energy. Jet-fuel prices are linked to crude oil. But when the energy markets break sharply from their expected ranges, as has happened this year, it can disrupt preconceived hedges. Story has explanation.<br/>
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Even as some airlines move to resume service when countries ease coronavirus restrictions, it’s unlikely the experience will feel much like the type of flying we’ve come to know. Airlines have been one of the sectors hardest hit by the pandemic, with many carriers forced to park entire fleets — or close for good — while the industry racks up estimated losses of $252b. Now, as operators try to emerge from the ashes, they will have to implement a host of changes to get back off the ground. Many of those will depend on government guidelines. Bi- and multi-lateral agreements will be required before most long-haul flights can return, for instance, notes Peter Harbison, chairman emeritus of Centre for Aviation (CAPA). Meanwhile, airports will need to design their own comprehensive health and safety measures, likely involving biometrics and touchless check-in. And that’s all before you get to departures. Story looks in detail at how things might look once you reach your gate, such as the introduction of health screenings, a change in cabin layouts and more.<br/>
US officials are preparing to begin checking passengers’ temperatures at roughly a dozen airports as soon as next week, as the coronavirus pandemic has heightened travel anxieties, according to people familiar with the matter. Details of the plan are under review by the White House and are subject to change, the people said. It couldn’t be determined which airports will initially have the new scanning procedures. A senior Trump administration official said the initial rollout is expected to cost less than $20m, and that passengers won’t be charged an additional fee. Airlines have been pushing for the TSA to start taking passengers’ temperatures as part of a multifaceted effort to keep potentially sick people from boarding planes and to make passengers feel more comfortable taking trips again. Demand for air travel has dropped more than 90% amid transport restrictions and stay-at-home orders. People familiar with the matter said the TSA has raised concerns about taking on responsibility for temperature scanning, believing it doesn’t fall within the scope of its security mission. Its employees also have been exposed: Over 500 have tested positive for Covid-19 and six have died. “At this time, no decision has been made regarding specific health screening measures at airports,” the TSA said Friday.<br/>
Suing an airline seems to be the new American pastime. Since the COVID-19 pandemic started, passengers have taken all of the legacy carriers to court, alleging they failed to refund their tickets as required by law. Early last month, a passenger in Chicago sued United for refusing to issue refunds for a canceled flight despite "being entitled to a refund if the airline canceled a flight regardless of the reason." A few days later, another passenger filed a lawsuit Delta, accusing the carrier of acting in a "deceptive and unfair manner" in failing to honor ticket refunds and requests from its passengers after the outbreak. Less than a week after that, the same law firm took American Airlines to court, alleging it forced customers into a rebooked flight or travel voucher instead of returning their money. "Passengers are eager to take action," says Steve Berman, a managing partner for Hagens Berman, the law firm litigating the cases. "Airlines have only offered them vouchers that they won't be able to use for the foreseeable future and dead-end customer support phone calls. Airlines, as we expected, have made every attempt to deny responsibility." It's happening everywhere. Canada's airlines are also being sued. European airlines are reportedly next. Story has more.<br/>
At least one person has died after an aerobatic Canadian air force jet crashed into a residential neighbourhood. Another crew member was injured when the plane hit a house in the city of Kamloops, British Columbia. One pilot was able to eject before the crash on Sunday, video showed. The Snowbirds jet had been on a tour "to salute Canadians doing their part to fight the spread of Covid-19", according to the team's website. The Snowbirds perform aerobatic stunts for the public, similar to Red Arrows in the UK or the US Blue Angels. The crash happened on Sunday morning, shortly after the jet took off. "It is with heavy hearts that we announce that one member of the CF Snowbirds team has died and one has sustained serious injuries," the Royal Canadian Air Force said in a tweet. The Air Force later said that the crew member's injuries were not thought to be life threatening.<br/>
The boss of Heathrow has urged the government to develop plans to restart travel between “low-risk countries” as global lockdown measures are eased. John Holland-Kaye, CE of the busiest airport in Britain, said the UK should adopt a risk-based approach to flights and warned that the UK economy will suffer if blanket travel restrictions continue. He also backed the idea of “immunity passports” to allow people who have already had Covid-19 to travel more freely. Heathrow’s passenger numbers plunged 97% in April, from an average of 250,000 a day to between 5,000 and 6,000 since lockdown. Holland-Kaye told Sky News: “This is a very minimal level of traffic, and I think that as long as the quarantine [travel ban] is in place, that will continue at those low levels. The quarantine cannot be in place for more than a relatively short amount of time if we are going to get the economy moving again. This is where we are urging the government to have a common international standard, working with other countries so that traffic can start to flow in a normal way between low-risk countries.”<br/>
Soon after Virgin Australia filed for bankruptcy last month, Phil Seymour’s phone started buzzing. Three leasing companies and two banks wanted to know if he had staff in Australia. Seymour runs IBA Group Ltd, an aviation data and advisory business. His company also repossesses jets when airlines go bust. Business for that line of work is poised to take off as the economic repercussions of the coronavirus pandemicwreak havoc on global travel. Most of the world’s biggest airlines have grounded upward of 80% of flights. Airlines are furloughing or laying off tens of thousands of staff, hoarding cash and negotiating with governments for bailouts. When airlines go bankrupt or miss payments on planes, aircraft financiers and lessors want their jets back. They call companies like Mr. Seymour’s to do the repossessing. It is a niche industry, with mostly small players, or those offering the service as part of a wider aviation-consultancy remit. Like the airline business itself, it can be boom or bust. In 2016, a banner year for airlines, only 11 carriers, with 56 planes, went bankrupt, according to data compiled by IBA. The past few years have been harder for airlines after many budget carriers pushed too aggressively for growth. In 2018 and 2019, there were 30 and 27 bankruptcies, respectively. This year, there already are 19. Those airlines operated 480 aircraft, the largest bankrupt fleet since IBA started compiling data. Story has more.<br/>
Pakistan resumed domestic flights between major cities for the first time in nearly two months on Saturday with the requirement that face masks be worn and vacant seats left between passengers, officials said. International flights will remain suspended till May 31. The first Pakistan International Airline (PIA) flight carrying 84 passengers departed from Karachi for Lahore at 1300 local time (0800 GMT), along with flights for Lahore and Islamabad operated by a private airline, local media reported. “In view of the difficulties faced by passengers in traveling between major cities, the Federal Government has allowed limited domestic flight operations from five major airports, Islamabad, Karachi, Lahore, Peshawar and Quetta with effect from May 16,” said a statement issued by the Aviation Division. Domestic and chartered flight operations will require disinfection of the aircraft prior to boarding, at least one vacant seat between the passengers and compulsory wearing of masks and use of hand sanitizers. No food and beverages will be allowed during domestic flights.<br/>
At 11.16am on Tuesday there is no luggage going through the system at Dublin Airport. Not one single bag is moving from planes to baggage halls, or from check-in desks to planes ready for take-off. The airport is open, but at a virtual standstill. Over the course of two hours, just a handful of passengers make their way through the sprawling complex. None look happy to be there. “It gives me the chills to see it like this,” says the airport’s head of external communications, Siobhán O’Donnell. Before Covid-19 changed everything, 750 planes would take off and land at Dublin Airport daily. On Tuesday just 28 are listed, and most of these are almost empty. “On this day last year we had 102,000 passengers,” says O’Donnell. In the first wave of flights between 6am and 8am – the airport’s busiest time – 36 people go through Terminal 1 and 56 people depart from Terminal 2. No one wants to travel now. There is no one going on holidays and anyone coming or going is most likely being repatriated.” Most of the airport’s services have been “mothballed”, waiting until things reopen. When this happens, they will look different to how people remember them. Already, plexiglass dividers have been installed at the cash registers in the shops, and the signs alerting people to the need to socially distance are everywhere.<br/>