Italy's CODACONS (Coordination of environmental protection associations and users and consumers rights) reported (22-May-2022) the cost of intra European tickets increased 91% in Apr-2022, compared to the corresponding period in 2021. CODACONS outlined fares for intercontinental services increased 35.7%, while domestic airfares have increased 15.2%. The association highlighted the growth in prices are affected by increased fuel prices and operating costs. [more - original PR - Italian]
Loading
Premium Featured Analysis
Jet fuel prices spoil the airline party as demand returns – slowly: Part 1Jet fuel prices are up almost USD100 a barrel compared with May-2021. This is projected to add at least an additional USD50 billion to airline industry costs this year. It could even approach USD100 billion.
This compares with the most profitable year ever in airline history, when the industry scraped USD38 billion in profit (nearly half of which was made by the major US airlines).
So what does this mean for the airline outlook? And where will the traffic and profitability growth be over the next two or three years?
These are key questions for the industry, coming off the biggest loss in its history and already deeply indebted.
India’s two largest airlines have unveiled high-profile CEO hires, underlining the fact that the country’s airline sector is entering a new phase with a dramatically altered competitive landscape.
Air India and IndiGo have both selected experienced airline leaders from airlines outside the country, while other Indian airlines have also made CEO changes recently. This will give the Indian airline industry a very different look in the post-pandemic period.
The leadership reshuffle is fitting, as in many cases the airlines themselves have been shaken up by restructurings, ownership changes and relaunches. It looks as if the Indian airline sector will be one of the most interesting – and dynamic – to watch over the next few years.
Thailand, where tourism historically accounts for 12% of GDP, took the full force of the COVID-19 pandemic.
But measures belatedly taken by the government have enabled Airports of Thailand (AoT), the biggest operator and one which is in the process of expanding from six to nine airports, to publish financial statements that at least document a steadying of the boat financially.
Originally a state enterprise, AoT was corporatised in 2002. A subsequent partial IPO (30%, institutional and retail investors) was held in 2004, the state retaining 70% through the Ministry of Finance.
AoT’s results are released against the back drop of Thailand’s slow emergence from the COVID-19 pandemic and the associated lockdowns and travel restrictions.
The problem is that the company has started to increase revenues and narrow its losses just as the main tourist season ends, placing an onus on the Tourist Authority to find new markets, quickly.
Analysis
Airlines & airports on alert as corporate travel seeks greenest providers for sustainability drive20-May-2022
Airlines & airports on alert as corporate travel seeks greenest providers for sustainability drive
Corporate travel procurement increasingly will be decided not just on traditional metrics, including price, airline network, schedule, flexibility, and loyalty rewards, but also on the stated sustainability strategies of airlines and the demonstrated outcomes of decarbonisation commitments.
To ensure that a company’s sustainability objectives are also supported by the actions of travel suppliers, including airlines, it is critical that corporate procurement divisions have access to meaningful and detailed performance data from airlines to demonstrate not only the existence of sustainability strategies, but also demonstrated actions and evidence of outcomes.
A new Business Travel edition of the Airline Sustainability Benchmarking Report 2021, jointly prepared by CAPA - Centre for Aviation and Envest Global highlights some of the core elements of sustainable aviation, methods of quantifying individual airline sustainability credentials, and emissions.
The private airport sector organisations in Latin America that are most often in the news are those like Corporación América and the European operators that have taken a stake in various Brazilian airports.
But there are a number of smaller ones based there which play an important role in expanding the sector throughout the region.
One of them is Odinsa; Odinsa is progressing a ‘new airport’ project in Cartagena, Colombia, which is allied to the existing airport there and is scheduled to open within three years.
It may also help sustain a pre-pandemic tourist boom in Colombia, a country once considered taboo by western tourists.
CAPA Americas Aviation & LCCs SummitMore
Upcoming Event
25-26
May
Rio Grande: CAPA Americas Aviation & LCCs Summit
CAPA's Americas Aviation Summit returns in 2022, gathering industry leaders and the regions travel community, to examine key commercial and operational issues affecting airlines and airports in the Americas.
CAPA Latin America Aviation & LCCs SummitMore
Upcoming Event
25-26
Aug
Salvador: CAPA Latin America Aviation & LCCs Summit
CAPA's Latin America Aviation & LCCs Summit will be held in Salvador, one of Brazil's most vibrant and colourful cities. Join us to explore the key strategic issues impacting the Latin American aviation sector.
Consumers are at the heart of digital transformation and the pandemic has only accelerated the shift to digital retailing and e-commerce, backed by sophisticated IT platforms. And we have seen how effective the non-travel online retailers, like Amazon, have been – and they’ve grown their wallet share substantially. These new players have gathered more data and learned more about us over the past two years than ever before and the worry is, for a heavily indebted and struggling airline industry – can it keep up and regain its fair share of the ‘economic wallet’ and unlock new revenue streams, as well as meeting shifting customer needs.
Airlines are at a disadvantage in that their starting point are often ageing tech systems of IT platforms, software and hardware that are highly complex, fragile, susceptible to cyber-attacks and expensive to maintain. Many are falling behind in this digital arms race. But for those airlines that get it right, there can be rich rewards in being an effective player in a digital world.
CAPA TV spoke to senior executives on the sidelines of the CAPA Airline Leader Summit - 'Airlines in Transition 2022’ to get their observations on the subject.
CAPA Events are hosted in key markets around the world and attract the highest calibre of thought leaders and decision makers in the aviation and travel industry. Delegates are provided with unprecedented access to the latest data, insights and trends from our global team, in addition to valuable networking opportunities with executives across all sectors of the aviation and travel industry. Review CAPA’s full events calendar here.
Belgium's Federal Government lifted (23-May-2022) its COVID-19 face mask requirement and travel restrictions effective 23-May-2022. The face mask requirement will only remain mandatory in hospitals, surgeries and pharmacies. Non essential travel from outside the EU will no longer be banned, while COVID-19 testing on days one and seven after arrival, as well as quarantine measures are no longer mandatory. In addition, travellers are no longer required to provide a passenger locator form, or proof of a vaccination, recovery or test certificate. [more - original PR]
×
24-May-2022 1:12 PM
Korean Air proceeding with efforts to secure antitrust approval for Asiana merger in six markets
Korean Air reported (23-May-2022) it is proceeding with efforts to secure approval from antitrust authorities in Australia, China, Japan, the US, the UK and the EU to acquire a 63.88% stake in Asiana Airlines for KRW1.8 trillion (USD1.4 billion) and subsequently merge the two airlines. The airline noted it has invested approximately KRW35 billion (USD27.7 million) up to Mar-2022 on consulting and advisory fees to secure approval for the merger, and is working with three global law firms, eight local law firms in individual countries, three economic research firms and two political advisory firms. As previously reported by CAPA, the merger has already received approval from antitrust authorities in Turkey, Taiwan, the Philippines, Malaysia, Vietnam, Singapore, Thailand and New Zealand. Korean Air stated antitrust authorities in the US, EU, UK and Australia require other airlines to launch services on select international routes operated by both airlines that are at risk of negative impact on competition following the merger, due to the two airlines representing a significant percentage of the market share. [more - original PR - Korean]
Barbados' Government announced (23-May-2022) plans to remove COVID-19 testing requirements for vaccinated travellers, effective 25-May-2022. [more - original PR]
Singapore Changi Airport announced (22-May-2022) operations in terminal 2 will resume on 29-May-2022, as part of a phased reopening. Key touchpoints including arrival immigration, baggage claim belts and contact gates at the southern wing of the terminal will be ready for flight operations. T2 will mainly host peak hour arrival flights of airlines operating in T3. The expanded T2 will also see a larger arrival immigration hall with more automated immigration lanes and special assistance lanes. When completed by 2024, the expansion works will raise the terminal's capacity by five million to 28 million passenger movements per year. [more - original PR]
Spain's Ministry of Industry, Trade and Tourism updated (21-May-2022) its COVID-19 travel restrictions, to make entry measures for third country travellers consistent with those for travellers from EU and Schengen countries. Effective 21-May-2022, all travellers will be able to enter Spain by providing at least one of the following certificates:
- Ministry of Health accepted vaccination certificate;
- Negative PCR or antigen test, taken within 72 or 24 hours prior to departure to Spain;
- Authorised recovery certificate, valid for 180 days, issued at least 11 days after the confirmation of infection;
- Children under the age of 12 years are exempt from presenting any type of certificate. [more - original PR - Spanish]
Want More News Like This?
CAPA Membership provides access to all news and analysis on the site, along with access to many areas of our comprehensive databases and toolsets.
Find Out MoreAirline Sustainability Benchmarking Report 2021 - Business Travel Edition
This report, jointly prepared by CAPA - Centre for Aviation (CAPA) and Envest Global (Envest), is designed to highlight some of the core elements of sustainable aviation, methods of quantifying individual airline sustainability credentials, and emissions.