Global airline body IATA said that the crisis deepened for airlines in January, as international traffic plunged 86% in the month compared to pre-crisis levels, and domestic air traffic was down 47%. New variants of the coronavirus forced governments to tighten travel restrictions across the world, hurting the outlook for airlines, the group warned. “That is what drove the weakness and the low points in January,” said IATA chief economist Brian Pearce. “Airlines are facing a really tough start to the year.”<br/>
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Air freight traffic has returned to pre-pandemic levels, the IATA said Tuesday, but passenger traffic slumped further in January. IATA global demand as measured in tonnes of cargo shipped per kilometre was up 1.1% compared to January 2019 and rose by 3% from December 2020. Capacity is down nearly 20% from January 2019 and fell 5% from December 2020, however, as airlines have taken out of service passenger jets that also transport cargo. But for passenger traffic, which generates some 85 percent of revenues for airlines, the situation has gone "from bad to worse", said IATA. Passenger traffic, measured as revenue per passenger kilometre, was down by 72% in January from the same month last year. That is worse than the 69.7% annual drop registered in December.<br/>
An important question facing the airline industry is not whether it will face a pilot shortage, but when it will begin. With the number of flights reduced to a fraction of what they were before the pandemic, it's hard to imagine that there could be a pilot shortage on the horizon. As of February, global airlines were only flying at about 47% of pre-Covid capacity, based on our own analysis of data from OAG and the IATA. But by 2025, after global demand in domestic and international travel expands beyond 2019 levels, we expect a worldwide shortfall of at least 34,000 commercial pilots — almost 10% of the total workforce. That gap, which will begin to be felt as early as next year, is based on a modest recovery scenario. If we were to see a more rapid recovery, that shortage could reach 50,000. The danger: A pilot shortage could ultimately limit industry growth later in the decade by as much as 10% to 12%, according to our analysis. And thanks to the pivotal role air transport plays in the global economy — aviation accounts for about 4% of global gross domestic product — slower industry recovery could temper economic growth worldwide.<br/>
The head of a group representing major US passenger airlines and a senior union official made the case to lawmakers on Tuesday for a third round of federal government assistance, according to testimony seen by Reuters. Since March 2020, Congress has awarded passenger and cargo airlines, airports and contractors nearly $90b in government assistance and low-cost loans, including two prior rounds of payroll assistance for US passenger airlines totaling $40b. The $1.9t COVID-19 relief package approved by the US House last week includes another $14 billion for passenger airlines to keep workers on payrolls for an additional six months. It awaits action by the US Senate. “We are still struggling and in dire straits,” Nick Calio, who heads Airlines for America, said in testimony before the House Transportation and Infrastructure’s aviation subcommittee. “We were hoping it would be better by now.” He warned that without the new round of assistance tens of thousands of aviation workers will “lose their jobs — or experience reductions to wages and benefits — effective April 1.” In 2020, US airline passenger traffic fell by 60% to 368m passengers, the lowest since 1984, and reported pre-tax losses of $46b. They continue to burn “an estimated $150m of cash every day,” Calio said.<br/>
Airline and aerospace lobbyists are urging lawmakers to approve a third round of payroll-support funding, including billions of dollars for workers at US aerospace manufacturing companies. They made their comments during a 2 March hearing that comes as the US Senate reviews a bill that would set aside another $14 billion in “payroll support” for US airlines. The bill, approved by the US House of Representatives on 27 February, would require airlines use the money to fund employee compensation. It would prohibit them from laying off workers until 30 September. The measure would also provide $3b in payroll funds to aerospace companies, including those making aircraft, aircraft engines and other aircraft components. That money would supplement half of those companies’ employee compensation costs. The US government has already passed two prior pandemic relief bills that set aside a combined $40b for airline workers. The most-recent of those laws prohibits airlines from laying off workers until 31 March.<br/>
US airlines are laying the groundwork for a travel rebound that still looks months, if not years, away. Some carriers are buying new planes, while others are training pilots and even adding staff. Decisions they make now will affect how they will be positioned to capitalize on an eventual recovery in air travel. To be sure, US airlines are still struggling, losing $150m a day, said Nick Calio, CEO of Airlines for America, an industry group that represents United Airlines, American Airlines, Delta Air Lines, Southwest Airlines and other major carriers. US airlines lost more than $35b, combined, last year and passenger counts dropped by more than 60% from 2019 to about 370m, the fewest since 1984, according to the US DoT. “We’re hopeful that by the end of the year we will break even,” Calio said Tuesday in testimony before the House aviation subcommittee at a hearing about the industry’s recovery prospects. Capacity is down by half compared with last year while passenger traffic is still off more than 60%, the industry group said. But with vaccinations rising and new Covid-19 infections well off their highs of early January, airlines are starting to see glimmers of a recovery. The House passed a $1.9t coronavirus relief package last week that included a third round of federal payroll aid for airlines, $14b that will help soften the blow of a choppy first half of the year if it passes the Senate.<br/>
The COVID-19 pandemic has reshaped the global travel landscape and U.S. no-frills carriers are pouncing. As legacy airlines shrink to contain costs, budget carriers Spirit Airlines, Allegiant Travel and privately-owned Frontier Airlines are resuming pilot hiring and expanding networks to seize turf dominated by larger rivals. The three airlines’ combined US market share, which barely topped 10% before the pandemic, could grow by 10 percentage points this year alone, said René Armas Maes of UK-based consultancy MIDAS Aviation. “Ultra low-cost carriers want to attack head-to-head; they believe they’re in a better position to rebuild travel demand,” he said. Las Vegas-based Allegiant has told prospective pilots whose hiring was halted as the pandemic unfolded: “We have recalled all of our furloughed pilots and are now planning for exciting growth opportunities.” Spirit and Frontier have posted pilot job ads and are taking delivery of Airbus A320neo jets that could open longer routes, including coast-to-coast flying traditionally controlled by legacy, or full-service, carriers.<br/>
The next major flash point over coronavirus response has already provoked cries of tyranny and discrimination in Britain, protests in Denmark, digital disinformation in the United States and geopolitical skirmishing within the EU. The subject of debate: vaccine passports — government-issued cards or smartphone badges stating that the bearer has been inoculated against the coronavirus. The idea is to allow families to reunite, economies to restart and hundreds of millions of people who have received a shot to return to a degree of normalcy, all without spreading the virus. Some versions of the documentation might permit bearers to travel internationally. Others would allow entry to vaccinated-only spaces like gyms, concert venues and restaurants. While such passports are still hypothetical in most places, Israel became the first to roll out its own last week, capitalizing on its high vaccination rate. Several European countries are considering following. President Biden has asked federal agencies to explore options. And some airlines and tourism-reliant industries and destinations expect to require them. Dividing the world between the vaccinated and unvaccinated raises daunting political and ethical questions. Vaccines go overwhelmingly to rich countries and privileged racial groups within them. Granting special rights for the vaccinated, while tightening restrictions on the unvaccinated, risks widening already-dangerous social gaps.<br/>
The first digital vaccine certificate is set to be launched by the world's airlines this month as part of a four-step plan for summer holidays being considered by the Department for Transport (DfT). The Travel Pass app, developed by the IATA, will allow passengers to present pre-departure test or vaccine certificates on arrival at their destination, enabling them to sidestep quarantine or other restrictions. IATA is in talks with the DfT over the app, to which immunity certificates for those who have had Covid but have not been vaccinated could be added. It will be trialled by 10 airlines including IAG, which owns BA, Qantas and Singapore Airlines, starting initially with pre-test data but ready to be adapted to include vaccine certificates once they are digitised. At present, most countries are using paper to confirm people's inoculations, which the airlines are concerned could delay the introduction of a travel pass with both vaccinations and test data and lead to lengthy queues at airport immigration desks. The app is part of a four-stage approach IATA has proposed to the DfT that would see international travel restart in May, with pre-departure testing or vaccines being used for entry to a country before the eventual removal of all restrictions to allow free travel between "green list" countries.<br/>
The Caribbean is hunting for visitors and vaccines to jump-start the stalled economy in one of the world’s most tourism-dependent regions. Clear waters and warm sand attracted a record 31.5 million tourists to the Caribbean in 2019, but visits plummeted by an estimated 60% to 80% as the pandemic hit last year. That's devastating for a region whose countries depend heavily on visitors for income. “Many countries prefer hurricanes compared to what has happened with the pandemic,” said Vincent Vanderpool-Wallace, a former Bahamian tourism minister who also led the Caribbean Tourism Organization. Tens of thousands of tourism-related jobs were lost, including those held by Nadia Kidd and her mother in Jamaica. Kidd, 31, was a waitress at a resort and her mother worked at a guest house. Kidd, like many other workers, has yet to receive her severance pay and now runs a tiny grocery store out of her home to support her mother and daughter. “Everything is all on me,” said Kidd, who worked at the Meliá Braco Village resort in Trelawny. “I have loans to pay, light bill and internet (that I) have to pay because my daughter has to go to school online.”<br/>
Boeing has raised concerns over the design of arch-rival Airbus’ newest narrow-body jet, the A321XLR, saying a novel type of fuel tank could pose fire risks. The US plane giant’s intervention is not without precedent in a global system that regularly allows manufacturers to chime in whenever safety rules are being interpreted in a way that might affect the rest of the industry. But it comes at a pivotal moment as Boeing emerges from a two-year safety crisis over its competing 737 MAX, and Airbus faces its own crucial test of the tougher mood expected from regulators worldwide following the MAX’s 20-month grounding. In a submission to the EASA, Boeing said the architecture of a fuel tank intended to increase the A321XLR’s range “presents many potential hazards.” The debate surrounds the hot-selling A321XLR’s main marketing point - the longest range of any single-aisle jet. In most jets, fuel is carried in wings and central tanks. To meet demand for longer routes, Airbus has already added optional extra fuel tanks inside the cargo bay of some A321s. For the A321XLR, Airbus plans to eke out more space for fuel by moulding one tank directly into the fuselage, meaning its shape would follow the contours of the jet and carry more fuel.<br/>
The CDC has issued new public health requirements for US visitors who have recently been in the Democratic Republic of the Congo (DRC) or Guinea that take effect on Thursday to address Ebola concerns. Travelers who have been in the two central African countries within the past 21 days must fly to one of six U.S. airports - New York-JFK, Chicago, Atlanta, Washington Dulles, Newark or Los Angeles, according to the order first announced on Monday but signed on Tuesday. The CDC will require airlines to collect and transmit passenger information electronically to the agency for public health follow-up for all passengers who have been in the two countries who are boarding a flight to the United States. “Timely public health follow-up requires health officials to have immediate access to accurate and complete contact information for travelers as they arrive in the United States,” CDC Director Rochelle Walensky said.<br/>
Portugal’s aviation regulator on Tuesday refused to evaluate a plan to build a new airport in Lisbon, in the latest setback for one of the country’s largest infrastructure projects, but the government said it would push for a solution. The country’s tourism industry, where growth was brought to a halt last year by the COVID-19 pandemic, has complained for years about a lack of capacity at Lisbon’s Portela airport. A new airport at Montijo on the southern bank of the Tagus River was proposed as a second hub. Plans for the new airport have been under consideration for five decades and the government said in 2019 the Montijo airport, where there is already a military air base, would be completed next year. But the regulator ANAC said it had rejected the evaluation request submitted by airport authority ANA as not all municipalities in and around the new airport were happy with the plans, with some citing environmental concerns.<br/>