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This summer has long been forecast as a potential boom time for the travel industry. Retailers and economists have been talking a lot about how consumers are starting to buy less stuff and are instead spending more on vacations and other experiences. But that's not the story the travel stocks themselves are telling. Worries about inflation and a resurgence in Covid cases in China are starting to take their toll. After a hot start to the year, shares of major hotel chains including Hilton, Wyndham and Hyatt have tumbled on economic jitters and travel slowdown concerns. All three stocks are down nearly 20% this year. Casino stocks also have plunged, as have shares of cruise operators. Major airline stocks, which have held up better than the broader market this year, have been losing altitude lately. Shares of American, United, Delta (DAL) and Southwest (LUV) all fell sharply Tuesday and are now in the red for 2022.<br/>And now Airbnb is trading near an all-time low, more than 50% below its IPO price from late 2020. Vrbo owner Expedia (EXPE) has lost more than a third of its value in 2022.<br/>Is this a bad sign for the summer travel season and the economy? It's still too hard to tell. It's worth remembering that last year's second and third quarter earnings and revenue for leisure companies was incredibly strong as consumers started to worry less about Covid. Many Americans tired of sheltering in place in 2020 went back out and traveled as Covid cases dropped during what was dubbed the "Hot Vax Summer." So companies in the travel business may be facing difficult comparisons to last year's results. Add inflation pressures into the mix, and the year-to-year contrast could be even more jarring. Story has more.<br/>

The mid-pandemic days of empty airplanes are long gone, and in their place are sky-high fares and overcrowded (maskless) flights. The top 11 US airlines will fly 12% fewer summer flights, according to data tracker Cirium, primarily because of a lack of pilots; jet fuel costs have soared; and US leisure destinations are proving to be the most sought-after spots on Earth. All of this translates to far more air travelers than there are airplane seats—a mismatch that’s sent summer fares for domestic travel up 25% from pre-Covid levels and 50% higher than last year, according to travel search engine Hopper. In April, domestic fares climbed 18.6%, the biggest monthly increase since the US Bureau of Labor Statistics started tracking the numbers in 1963. According to AAA, that rise has brought the average domestic ticket price up $160, to $445. Data from booking engine Skyscanner show similar increases on long-haul international routes; prices have risen 20% since 2019, to an average of $797. Among the most popular routes, a Los Angeles to New York ticket is selling for an average of $569 round trip, up 69% from 2019, and New York to San Francisco is almost double, at $662, Hopper shows. The jump is even larger in markets where service has been reduced: St. Louis to Decatur, Ill., for one, has soared 815%, to $609, and Seattle to Houston is up 541%, to $1,383. In addition to fewer flights and high demand, a major culprit is the price of jet fuel, which spiked after Russia invaded Ukraine, making some routes too expensive to fly. Although several airline executives have said higher fares and inflation across the economy haven’t discouraged summer travel plans, some outside sources disagree. Researchers at Adobe Digital Insights say domestic online bookings for Memorial Day weekend were down 13% through the end of April from the same point in 2019. A survey released by travel site the Points Guy in early May showed that 41% of US adults cited cost as the largest disruption to their summer plans.<br/>

Southwest is the best airline in the country for economy and basic economy flights, according to a new J.D. Power survey of more than 7,000 travelers. JetBlue Airways got top marks for premium economy, business and first class in the J.D. Power 2022 North America Airline Satisfaction Study and also scored well for economy and basic economy fares. Overall customer satisfaction across airlines dipped a bit from last year's record high, but that's to be expected as more people return to travel, said Mike Taylor, J.D. Power's managing director for travel, hospitality and retail. "When you get an aircraft that's half to a third full, you think this is a great experience, but you can't maintain an industry flying planes around that are only one-third of capacity," he said. "There's been a greater demand, which means higher prices, less satisfaction and also that middle seat is more likely to be filled than it was a year-and-a-half, two years ago. And that, of course, kind of diminishes satisfaction among airline travelers." This year's study found average airfares jumped 20% year-over-year as fuel prices rose. Taylor says cost and perceived value traditionally weigh heavy in customer satisfaction. Cost and fees are just one factor. Airline customers also score airlines based on satisfaction with aircraft, baggage, boarding, check-in, flight crew, in-flight services and reservation experience. Story has more.<br/>

For those among us who like a tipple after takeoff, consider this a sign that the world is healing: Many airlines are resuming in-flight meals and alcohol service. Early on in the pandemic, many airlines completely cut in-flight refreshment offerings (aside from perhaps a hasty water bottle delivery). Slowly but surely, airlines are reintroducing the amenity. For example, in 2020, Southwest cut service completely on short flights and offered only water and a prepackaged snack on longer flights. In 2021, Southwest reintroduced a small selection of nonalcoholic drinks to all flights. It wasn’t until February 2022 that its complete pre-pandemic beverage menu returned, which included more soda and juice choices — plus alcoholic beverages for an additional cost. Other airlines moved a bit more quickly. By July 2020, Delta Air Lines was offering beer cans and single-serve wine bottles. It wasn’t until March 2022 that it brought back hot meals for its Delta One and first class customers on some flights. It’s hard to peg just one reason why alcohol and hot meals disappeared on flights during the COVID-19 era. For some, it eliminated unnecessary lingering in the aisles while flight attendants took everyone’s orders. Others point to unprecedented rates of unruly passenger reports as the reason to remove alcohol in particular. In 2021, the Federal Aviation Administration initiated 1,099 investigations around unruly passengers. That’s up from just 183 in 2020, 149 in 2019 and 146 investigations in 2018, according to FAA data. And not all bad behavior yields an investigation. In 2021, the FAA received reports of 4,290 mask-related incidents and 5,981 unruly passenger reports. While it’s unclear how many of those cases involved alcohol (or how many more there might be if alcohol was accessible), flight attendants suggest a correlation.<br/>

The United Arab Emirates has won a contract to operate ground services at three airports in Afghanistan, UAE presidential adviser Anwar Gargash said on Wednesday on Twitter, confirming an announcement made earlier by the Taliban. Turkey and Qatar were also competing for the contract and had sent technical teams to help airport operations and security after the Taliban took over in August last year, as foreign forces withdrew from Afghanistan. The Taliban's acting deputy prime minister, Mullah Abdul Ghani Baradar told reporters in Kabul on Tuesday that his administration agreed to renew an airport ground handling agreement with the UAE. "The well-deserved win to operate ground services in three Afghan airports, which came after a big competition with several states, is underpinned by the UAE's capability and competence in civil aviation management and safety," Gargash said. It was not immediately clear whether the agreement went beyond existing arrangements or if it included airport security, a sensitive issue for the Taliban. A source briefed on the negotiations in Afghanistan told Reuters that a sticking point in the negotiations with Qatar had been Doha's condition that Qatari security personnel be present at the airports. The Taliban, which fought for decades against US-led NATO troops, say they do not want the return of international forces.<br/>

Israel and Turkey pledged to restart negotiations on direct flights by Israeli airlines after landmark talks between their foreign ministers, building on recent steps to overcome years of tensions. “We agreed to energize our relations in many areas and reconvene mechanisms, as well as resume talks on civil aviation,” Turkish Foreign Minister Mevlut Cavusoglu said Wednesday. “We will be happy to see your national carriers and other Israeli companies flying to different destinations in Turkey and between different cities in Turkey and Israel.” Various ministries and government agencies will reestablish contacts, said Cavusoglu, the first Turkish foreign minister to visit Israel in 15 years. Israeli Foreign Minister Yair Lapid said the talks had initiated “a new framework for improving our relations.” Turkey has sought to reset its ties with Israel and the Arab world, including Saudi Arabia, in recent months as it looks to bolster a floundering economy that threatens to erode support for President Recep Tayyip Erdogan ahead of elections next year. The diplomacy is also part of a broader realignment that’s seen regional rivals heal rifts and step back from conflicts since US President Joe Biden took office. Cavusoglu met Tuesday with Palestinian Authority President Mahmoud Abbas and Foreign Minister Riad Malki, reiterating Turkey’s support for “a two-state solution” to end the Israeli-Palestinian conflict. The decades-old struggle for a Palestinian homeland has spilled into Israel’s ties with Erdogan’s government in Ankara.<br/>

Korea will temporarily allow visa-free entry for group tours from Vietnam, the Philippines, Indonesia and Mongolia through an international airport in Yangyang, the justice ministry said Wednesday. Starting June 1, travelers in group tours from Vietnam, the Philippines and Indonesia arriving at Yangyang International Airport on the east coast can also stay in the country for up to 15 days without a visa, officials said. Group tours from Mongolia will be allowed such a visa-waiver program starting Oct. 1, they added. The program, which is aimed at boosting local tourism and the regional economy in Gangwon Province, will be carried out until May 31, 2023, with the possibility of it being extended every year depending on the result. The tourists should be fully vaccinated against the COVID-19 virus and can travel in the greater Seoul area and Gangwon Province, the ministry said.<br/>

Vietnam needs policies to support and remove difficulties for domestic airlines to regain their growth momentum in the post-Covid recovery period, transport experts said on Tuesday. At the seminar "Restoring and developing Vietnam's aviation industry in a new context" organised by Communist Review, in collaboration with the Ministry of Transport (MoT), experts said the air transport industry has been seriously affected and they urge the government to create the market and the development corridor as a key to return to the growth trajectory of the aviation industry. Đinh Việt Thắng, director of the Civil Aviation Authority of Việt Nam (CAAV) said: “The Covid-19 pandemic has delayed the development of the aviation industry and caused negative consequences for units in the air transport chain, especially the national airline Vietnam Airlines.” He added Vietnam's aviation market dropped sharply in the 2020-21 period with a decrease of 42.1% and 80% respectively compared to 2019. At the same time, Thắng said the local airlines have had to struggle, manage and implement all self-advocacy solutions as well as receive support from State management agencies to maintain operations until the market recovers. The director assessed that by 2022 the aviation market had signs of recovery, especially the domestic market, which is a positive signal for the operation of the aviation industry, contributing to mitigating difficulties and creating favourable conditions for the aviation industry and momentum for recovery and development in the coming years. However, he said, signs of recovery were only seen in the domestic market. The international market, which brings more than 60 per cent of revenue for Vietnamese airlines, is still facing many difficulties compared to the pre-epidemic level in 2019.<br/>