Omicron sets the airline industry back
December 26, 2021 Leave a comment
Here we go again as countries around the world re-introduce new restrictions to curb the spread of Omicron which is believed to be more infectious though milder than other coronavirus variants. Airlines which are slowly recovering from two years of dismal performances are back to where they were.
This week sees many people facing travel disruptions as airlines cancel and cut back their flights. According to FlightAware, nearly 2,650 flights were cancelled globally on Christmas Day. The United States alone accounted for 937 flights, up from 690 on Christmas Eve.
United Airlines blamed it on “the nationwide spike in Omicron cases (which) has had a direct impact on our flight crews and the people who run our operation.” Delta too referred to the “impact of the omicron variant” as a contributory factor.
The shortage of crew has also led Cathay Pacific to cancelling flights to Australia, Europe and North America. The airline’s “closed-loop” roster which requires crews to stay in designated in hotels while in Hong Kong during the three weeks followed by a two-week quarantine at the end of the cycle has proved to be unpopular resulting in a low take-up rate since it is voluntary. (See Cathay takes a tough COVID line, Dec 1, 2021) Consequently Cathay is expecting to end the month of December flying no more than 12 per cent of the pre-COVID schedule.
Rival Singapore Airlines which has benefited from Singapore’s Vaccinated Travel Lane (VTL) scheme will suspend sale of VTL flights from Dec 23 to Jan 20 as Singapore introduces new restrictions to check the spread of Omicron. According to a Ministry of Health report on Dec 23, more than 50 of 65 confirmed imported Omicron infections arrived in Singapore via the VTL. (See Singapore’s Vaccinated Travel Lane: What it means for travellers, Dec 1, 2021)
Elsewhere in Asia, Thailand is reinstating mandatory quarantine for visitors, ranging from seven to ten days. The “sandbox” programme which allows visitors free movement outside of their accommodation at a specific location has also been suspended for all venues except the popular resort island of Phuket. This comes just after a month of its reopening to foreigners in November.
Downunder in Australia, thousands of travellers were affected by the cancellation of more than a hundred domestic flights from Sydney and Melbourne to other cities. Neighbouring New Zealand is deferring re-opening of its borders to the end of February. Consequently, Air New Zealand said it would cancel 120 services until then.
Many countries in Europe too have re-imposed restrictions. Ryanair for one sees a reverse in fortune as it expects its annual loss ending March to double to as high as 450 million euros in the wake of Omicron sweeping across the region. It has reduced its passenger forecast for January from 10 million to at most seven million, which means it is unlikely to reach its previous optimistic target of more than 100 million for the full year, placing the blame on the ban on British arrivals into France and Germany, and the suspension of all EU flights to and from Morocco.
So the unending saga of the coronavirus continues, setting back the much anticipated recovery after two years since the first known case of infection was detected. Where once there was hope that increased vaccination of the world’s population would pave the way to recovery of the industry, now it is not as certain. But hope springs eternal in the administration of a third dose, and Israel is already considering a fourth dose while the rest of the world struggles to catch up. Who knows what more variants are waiting to strike as the virus continues to mutate, although theoretically over tome subsequent mutations are likely to get weaker over.
Since air travel connects people and places, it is how the virus will spread easily, particularly as warned by the World Health Organization (WHO) of uneven vaccination levels globally. Some scientists predict it will be another two years before the virus becomes less of a concern. So it is looking beyond 2022, at least for now!