IATA has warned that proposals by airport operator AENA to increase user charges by 5.5% over five years at 46 airports across Spain could damage the country's economic and employment recovery from Covid-19, and labelled the move "irresponsible" The airline association's director general Willie Walsh states: "The whole aviation industry is in crisis. Everybody needs to reduce costs and improve efficiency to repair the financial damage of Covid-19. Having analysed AENA'’s situation, airlines believe that AENA could reduce its charges by 4%. "So proposing to pass the burden of financial recovery on to customers with a 5.5% increase is nothing short of irresponsible. The [civil aviation authority] DGAC should immediately reject the request and instruct AENA to work with the airlines on a mutually agreed recovery plan." IATA estimates that passenger demand in Spain fell 76% in 2020, does not expect a full recovery until 2024. The number of destinations with direct links to Spain also fell from 1,800 in 2019 to 234 in 2020. "An early recovery in travel and tourism is vital for Spain's economic success," argues Walsh. "But higher costs will delay a tourism rebound and keep jobs at risk. "AENA should keep in mind the long-term interests of both its shareholders and the country. And both are better served with cost-efficient airport infrastructure. "The Spanish government is actively looking to open borders and restart air travel. AENA needs to contribute to that effort, not erect a short-sighted and self-interested roadblock."

The UK’s announcement of countries to which non-essential travel can resume from 17 May has been given short shrift by IATA director general Willie Walsh. A statement issued by the airline industry association on 7 May simply quotes Walsh as saying: “It is very disappointing and frankly not worth commenting on.” The UK government has named Israel, Portugal and Gibraltar among the 12 countries and territories on its ‘green list’ to which non-essential travel is legal if Covid-19 testing requirements are met. Several of the destinations – including Australia and New Zealand – will not be an option for outbound travellers from the UK, however, because they do not accept non-essential travellers at this time. Moreover, the vast majority of destinations are categorised as ‘amber’ – including the USA, which former IAG chief Walsh has cited as a critical market for many network carriers – meaning arrivals are required to self-isolate for up to 10 days. UK transport secretary Grant Shapps said on 7 May that people should not choose to travel to ‘amber’ or ‘red’ destinations. Walsh’s comments represent a marked shift from IATA’s previous praise for the UK government’s approach to reopening international markets. Speaking earlier in April, Walsh said: “The UK government’s Global Travel Taskforce report marks an important step towards regaining the social and economic benefits of the freedom to travel from 17 May.” Citing “some positives”, he said the framework gave “some clarity to both travellers and the travel industry”.

Australia's Regional Express expects to break even by the end of the current financial year ending 30 June. "Rex is one of the rare airlines in the world able to achieve this incredible outcome during the pandemic whilst at the same time funding the expansion of the business into the domestic airline market," the company says in an interim guidance. Rex says its regional capacity is at 35% of pre-Covid-19 levels, and adds that it is cautiously expanding its regional network in an effort to stimulate demand while keeping capacity growth about 5% ahead of demand growth. According to the operator, overall demand in the regional market is back to 60% of pre-Covid-19 levels, although the recovery is uneven across the states. Rex says that demand in Queensland has exceeded pre-Covid-19 levels and its own capacity is back to 100%, while Western Australia is recovering "very strongly". Rex's regional operations "appear to be slightly loss-making at the current demand levels", it says, due to a significant reduction in government assistance from April. However, Rex is hopeful that demand will increase in the months ahead to return its regional operations to profitability. "Rex will also soon be announcing entry into other Qantas monopoly ports," it says, having commenced operations in Coffs Harbour and Port Macquarie on 28 March. According to the operator, these regional cities were "monopolised by Qantas" and accounted for 40% of passenger traffic in Rex's entire regional network. In the update, Rex reiterates plans to have 10 Boeing 737-800NGs in its fleet by the end of 2021, up from six currently, as well as its launch of five domestic routes since March. The operator says: "Rex’s entry into the domestic market has been predictably met by typical Qantas predatory behaviour of capacity dumping. Rex is determined to stand its ground and has introduced never-seen-before full-service fares of A$39 ($31) between Sydney and Melbourne." Rex also says that its cash position has improved "exponentially". Excluding the A$50 million funding from PAG, Rex's unencumbered cash reserves increased elevenfold from March 2020, it says, due to very strong advanced bookings on its five new domestic and two new regional routes. "Rex expects this to improve further as more routes are introduced," it says.