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Air France-KLM is considering delaying its planned capital increase because of tough travel restrictions imposed by governments to mitigate the spread of the Omicron variant of the coronavirus, two sources familiar with the company's plans told Reuters. The French-Dutch carrier was hoping to raise at least E1b by the end of the year to shore up its heavily-indebted, pandemic-hit balance sheet and repay government aid, but this is now likely to be delayed, the two sources said, speaking on condition of anonymity. "The mathematics of it doesn't work. They need to sell a recovery story and that doesn't work with Omicron hovering," said one of the sources. Air France-KLM declined to comment. The United States, Japan, Hong Kong and a number of European countries are among those to have tightened borders and imposed new restrictions amid uncertainty around the virulence of the new variant and its ability to evade vaccine protection. Shares in travel companies around the globe have plummeted since news of the variant emerged, with British Airways-owner IAG down almost 15% since Friday and Lufthansa and Air France-KLM down around 9%. The airline already completed a E4b recapitalisation package in April which included state support and a E1.036b rights issue that doubled the French government's stake to 30%. It had more than E10b of cash at hand at the end of September and can afford to delay the plan. Yet, it needs to reimburse state aid to lift a EU ban on merger and acquisition deals, a source at the French government said. Air France-KLM's CE Ben Smith said at the end of September the company was aiming to raise new funds "as soon as possible", without providing an exact date. <br/>

Italy's new ITA Airways has ordered 28 Airbus planes, the German-French conglomerate said in a statement on Wednesday, confirming a Memorandum of Understanding signed in September. The order includes seven compact A220 jets, eleven of the company's blockbuster model A320neo, and ten A330neo widebody airliners. "In addition, the airline will pursue its plans to lease A350s to complement its fleet modernisation," the company said. ITA started flying in place of Alitalia in October, after the airline that was once a symbol of Italian style and glamour was finally grounded due to years of losses and failed rescue attempts.<br/>

Garuda Indonesia, the country's flagship air carrier, has canceled planned flights connecting Tokyo and Bali due to concerns over the omicron COVID variant, dealing a further blow to the tourism-dependent island. Garuda had planned a weekly flight between Japan's Haneda Airport to Jakarta with a stop off in Bali from Dec. 5 through the end of the month in what would have been the first direct international flight to the island since it reopened to tourists mid-October. But "because of the tightening of immigration restrictions by both Indonesian and Japanese governments due to the omicron strain," the flights to Bali have been canceled, Garuda said on its Japanese website on Wednesday. Speaking to Nikkei Asia, a Garuda executive also blamed uncertainties over demand, following many cancellations on the Japanese side as travelers feared being caught out by Japan's tighter border controls. As a response to the spread of omicron in other parts of the world, Japan has banned most foreigners from entering the country and has extended the quarantine period for its own residents to 14 days. And the Ministry of Land, Infrastructure, Transport and Tourism has asked domestic and foreign airlines to suspend new bookings for all international flights arriving in Japan. Indonesia, too, has banned the entry of travelers from 10 African countries and Hong Kong, and announced late Wednesday that it has decided to extend its quarantine period for international arrivals to 10 days from the current seven, effective Friday.<br/>

Qantas plans to make every seat on some of its Airbus A380 superjumbos purchasable with air miles to help customers burn through a mountain of loyalty points built up during the pandemic. Airlines rarely reserve entire planes in this way, let alone the world’s biggest passenger jet. The move reflects strong pent-up demand -- loyalty members have accumulated air miles from everyday credit-card spending while stuck on the ground for months on end, and they want to use them to fly. Qantas plans to make every seat on some of its Airbus A380 superjumbos purchasable with air miles to help customers burn through a mountain of loyalty points built up during the pandemic. Airlines rarely reserve entire planes in this way, let alone the world’s biggest passenger jet. The move reflects strong pent-up demand -- loyalty members have accumulated air miles from everyday credit-card spending while stuck on the ground for months on end, and they want to use them to fly. <br/>Australia began reopening its international border at the start of November, triggering a deluge of ticket purchases. In four weeks, Qantas frequent fliers burned through more than 7 billion points on bookings, according to Wirth. A return flight from Sydney to Los Angeles costs 83,800 points in economy class and 216,800 points in business, the airline’s website shows.<br/>