L  L  News & Industry Affairs / Global

  L  Global airlines under pressure as jet fuel price soars
February 2, 2022. Gulf Times.

The rising price of jet fuel, which recently reached its highest point in well over five years, at almost $103/barrel, has become yet another challenge for the global aviation industry, which is badly hit because of Covid-19. 

Fuel is a major cost component of operating an airline, often accounting for 20-30% of operating costs, according to OAG, a UK-based global travel data provider. So, a rise in fuel costs of this scale (70% up on a year ago) means airlines have to reduce costs elsewhere or increase fares, OAG said and noted, “In the current operating environment neither is easy.”
    The global body of airlines – IATA estimates that jet fuel will average $102.2/barrel this year. This, it said will have a $65bn impact on the airline industry’s 2022 fuel bill. Fuel is such a large cost for airlines that it is the focus of intense efforts across the industry to find efficiency improvements. Read more...

  L  The Growth Engines of the Global South 
October 11, 2021. Yaroslav Lissovolik for ModernDiplomacy.eu.

The divergence in growth performance across the global economy was notably affected by the C-19 pandemic, as China weathered the crisis notably better thus far compared to most of the developed economies. The new growth forecasts released by the IMF in July 2021 suggest that developing economies are set to grow by more than 6% in 2021 and by 5.2% in 2022 after a contraction of around 2% in 2020. Nonetheless, the key question concerning the growth path of the developing economies remains open: will the developing economies be able to create South-South platforms to open up markets and boost mutual trade and investment? 
    A common platform for economic cooperation across the Global South opens the possibility for the world economy to lower global imbalances via creating a “no core – no periphery” mode of cooperation. It could serve to close the gaps and “blind spots” in the scale of regional economic integration in the developing world, most notably among the least-developed land-locked economies. More generally, such a platform could serve as a laboratory of “open regionalism” and new pathways in economic integration that are consistent with the UN goals of sustainable development. Read more...

  L  The impact of COVID-19 on the airport business and the path to recovery 
July 14, 2021. Airports Council International.

Unprecedented impact in 2020, cautious optimism for 2021

Airports Council International (ACI) World has published its seventh quarterly assessment analysing the economic impact of the COVID-19 pandemic, its effects on the global airport business, and the path to recovery.
    It has been more than fifteen months since the World Health Organization (WHO) declared the COVID-19 outbreak a pandemic. Since then, daily life across the globe has changed with unprecedented impacts on the global economy, trade, and mobility. Practically all aspects of economic and social activity were – and are still – disrupted.
    Air transport has remained one of the hardest-hit global industries. The economic, social, and health implications for the aviation sector are far-reaching and the pandemic will affect aviation businesses, passengers, and airports for years to come. While reductions in passenger traffic have occurred as a result of past shocks, the prolonged, near-complete shutdown of air traffic is unprecedented since the years of World War II and has devastated travel and tourism. Read more...

  L  Global Airline IT Market Analysis & Forecast to 2025: Covid-19 - Impact on Aviation Industry / Impact on Airline IT / Current State of Airlines
September 8, 2020. Globe Newswire.

The Analysis of the Global Airline IT Market, Forecast to 2025 report has been published by ResearchAndMarkets.com. 
    Airlines are facing an ever-evolving digital landscape and an increase in expectations from an always-connected passenger. Cloud computing, mobile solutions, machine learning (ML), Blockchain, etc. are disrupting numerous traditional processes across industries. Airlines have lagged behind other industries in embracing these digital enablers, but many have begun their digital transformation (DT) journey that will fundamentally change the traditional airline information technology (IT) strategies.  
    The major challenge for airlines is their dependence on legacy systems for their critical IT needs. Solution providers are developing digital solutions that will enable airlines to overcome this challenge and help them grow in their DT endeavors. Read more...

  L  IATA calls for passenger face covering and crew masks - opposes onboard social distancing  
May 5, 2020. IATA news.

Geneva – The International Air Transport Association (IATA) supports the wearing of face coverings for passengers and masks for crew while on board aircraft as a critical part of a layered approach to biosecurity to be implemented temporarily when people return to traveling by air. IATA does not support mandating social distancing measures that would leave ‘middle seats’ empty.   
    Evidence suggests that the risk of transmission on board aircraft is low. Mask-wearing by passengers and crew will reduce the already low risk, while avoiding the dramatic cost increases to air travel that onboard social distancing measures would bring.. Read the original article...

  L  Slow Recovery Needs Confidence Boosting Measures  
April 21, 2020. IATA news.

Geneva – The International Air Transport Association (IATA) called for governments to work with the industry on confidence-boosting measures in the face of an anticipated slow recovery in demand for air travel.  
    “Passenger confidence will suffer a double whammy even after the pandemic is contained—hit by personal economic concerns in the face of a looming recession on top of lingering concerns about the safety of travel. Governments and industry must be quick and coordinated with confidence-boosting measures,” said Alexandre de Juniac, IATA’s Director General and CEO. Read the original article...

  L  Emirates becomes first airline to conduct on-site rapid COVID-19 tests for passengers  
April 15, 2020. Air Transport News (ATN). 

Emirates in coordination with Dubai Health Authority (DHA) will be introducing additional precautions. Passengers on today’s flight to Tunisia were all tested for COVID-19 before departing from Dubai. Emirates is the first airline to conduct on-site rapid COVID-19 tests for passengers. Read the original article...

  L  Coronavirus and Globalization  
April 5, 2020. Alazar Kebede for Capital Ethiopia News. 

With more than 400,000 confirmed cases of COVID-19, businesses are coping with lost revenue and disrupted supply chains as factory shutdowns and quarantine measures spread across the globe, restricting movement and business activity. As the world grapples with the coronavirus, the economic impact is mounting – with the G20 Finance Ministers and Central Bank Governors having a conference call on 23 March to discuss the emergency. Read the original article...

  L  WTTC unveils health and safety protocols to re-establish confidence in travel  
May 14, 2020. Travel Weekly, Australia.

A range of world-wide measures to restart travel and tourism with confidence have been unveiled by the World Travel and Tourism Council (WTTC).

The new set of guidelines, coined the ‘Safe Travels’ protocols, have been crafted to rebuild confidence among consumers, and provide consistency for the full suite of industries that make up the travel and tourism sector, on the new approach to health and hygiene in the post-COVID-19 world.
    It comes in a bid by the private sector’s peak tourism body to create an overarching industry health policy, following WHO and CDC guidelines, to avoid the emergence of multiple standards, a scenario that would “only delay the sector’s recovery”. Read the original article...

  L  Coronavirus: Air passengers told to wear face masks  
May 4, 2020. Justin Harper and Peter Hoskins for BBC news.

Some major airlines are now requiring passengers to wear face masks on flights to limit the spread of viruses. 

Many big US airlines are bringing in new health and safety policies for both passengers and cabin crew this week. Other carriers around the world are also making mask wearing mandatory for when they restart flights. While around 90% of international flights have been cancelled, airlines hope to gradually resume air travel starting this month.. Read the original article...

  L  How Coronavirus spread in one restaurant shows why air travel is safer than you think  
April 22, 2020. Will Horton for Forbes.

In a time of standing six feet apart and avoiding confined spaces, there are naturally concerns about the health safety of air travel where passengers are crowded together on an aircraft.  
   Airlines are planning to block the middle seat on flights so passengers are spaced out, yet the restaurant study would appear to show social distancing has limitations. Read the original article...

  L  Jet fuel demand to remain low as airlines buckle up for tough ride  
April 15, 2020. Bozorgmehr Sharafedin, Tim Hepher and Koustav Samanta for Reuters (source: sharenet.com). 

Demand for flights and jet fuel could take years to recover from the coronavirus crisis as airlines struggle to survive their worst downturn, haunted by possible changes in the habits of tourists and business travellers. Among the various fuels, jet has been hit hardest and industry leaders warn it will take years for all-important airline-industry demand to return to 2019 levels...Read the original article...

  L  Airlines Facing Rapid Cash Burn  
March 31, 2020. IATA news

The International Air Transport Association (IATA) published new analysis showing that airlines may burn through $61 billion of their cash reserves during the second quarter ending 30 June 2020, while posting a quarterly net loss of $39 billion.

“Airlines cannot cut costs fast enough to stay ahead of the impact of this crisis. We are looking at a devastating net loss of $39 billion in the second quarter. The impact of that on cash burn will be amplified by a $35 billion liability for potential ticket refunds. Without relief, the industry’s cash position could deteriorate by $61 billion in the second quarter,” said Alexandre de Juniac, IATA’s Director General and CEO. Read the original article...