Home ›› 03 Dec 2021 ›› World Biz
Global airlines are bracing for more volatility due to the Omicron coronavirus variant that could force them to juggle schedules and destinations at short notice and rely more on domestic markets where possible, analysts say.
Many travellers have already booked trips for the Christmas period, a peak season for airlines, but since news of the variant last week, there are growing industry concerns over a pause in future bookings and further delays to the already slow recovery in business travel.
On Wednesday, United Airlines Chief Executive Officer Scott Kirby said the new variant will have a near-term impact on bookings.
Fitch Ratings has lowered its global passenger traffic forecasts for 2021 and 2022, saying the emergence of new variants like Omicron highlight the likelihood that conditions would remain volatile for airlines.
“It feels a little bit like we are back to where we were a year ago and that’s not a great prospect for the industry and beyond,” Deirdre Fulton, a partner at consultancy MIDAS Aviation, said at an industry webinar.
The International Civil Aviation Organization (ICAO) called for a “more measured and evidence-based” response, saying “the costs of significantly restricted global air mobility affect all countries”.
Airlines have been blaming a lack of consistent and stable health protocols as well as border restrictions for depressed international travel demand.
New protocols in the wake of the Omicron variant are expected to add to their headache.
The United States, for example, is moving to require that all air travellers entering the country show a negative COVID-19 test performed within one day of departure.
All non-EU travellers to mainland France, where the Omicron variant has not been detected yet, will have to show proof of a negative COVID-19 test, regardless of their vaccination status, a government spokesman said. Ireland and Portugal are also demanding that travellers produce a negative test.
Airlines are currently using a range of apps to verify test results.
