ARC NEWS
​Recovery gained pace in February: IATA
April 07, 2022
Global passenger traffic picked up markedly in February as Covid-19 fears receded, and the conflict in Ukraine had only a minor impact on demand, according to IATA. Data from the airline association shows that total traffic in February, as measured by revenue passenger-kilometres, was up 116% compared with a year earlier, a marked improvement compared with January 2022 when activity was 83% higher. This still represents, however, a 46% fall from February 2019's level. Domestic traffic was up by 61% compared with the year-ago period, against a 43% increase in January. Meanwhile, international RPKs were up 3.5 times against February last year, compared with a more than doubling in January. "The recovery in air travel is gathering steam as governments in many parts of the world lift travel restrictions," states Willie Walsh, IATA's director general. "States that persist in attempting to lock-out the disease, rather than managing it, as we do with other diseases, risk missing out on the enormous economic and societal benefits that a restoration of international connectivity will bring." Leading the gains was activity in Europe, with RPKs up 233% on the year, followed by the Middle East and North America, up 194% and 139% respectively. The outlier is Asia, with an improvement of just 60%, as ongoing restrictive Covid regulations continued to hinder the recovery. Answering questions after the data was released, Walsh said the strength of the recovery meant that some airlines would "definitely" be profitable this year, and many observers would likely be surprised at the robust earnings achieved by certain companies. This is despite the challenge of higher fuel prices, which it is "inevitable" will ultimately be borne by the consumer. "It typically takes about six months for higher oil prices to find their way [into stronger fares], but the very rapid increases [seen this year] are likely to be reflected a lot earlier than we would have traditionally seen," says Walsh. "I think the high oil price is a challenge but I don't see it as a challenge that the industry will not be able to face. Airlines know what to do and will respond quickly."


​German aviation seeks 'level playing field' EU climate policy
April 07, 2022
Key players in the German aviation industry Lufthansa Group, Fraport and Munich airport have called for a climate policy from EU that ensures a "level playing field" with competitors outside Europe. The three German companies have made an appeal to the EU Parliament and Council to initiate regulations that promote climate protection while maintaining the competitiveness of European hubs and airlines. In a joint press release, the firms say that they support the EU’s ambitious climate-protection goals and are driving forward decarbonisation of operations, including through high-cost investments. Yet current policies risks shifting CO2 outside of Europe, known as carbon leakage, as well as damaging homegrown companies. "If the current Fit for 55 plans were implemented without appropriate changes it would result in a unilateral cost increase for European network airlines and hubs. Connectivity, value creation and employment in Europe would be significantly weakened," the firms say. "It cannot be in the interest of the EU and Europe to put European aviation at a disadvantage with Fit for 55 and thereby weaken its international competitiveness," states Lufthansa Group chief executive Carsten Spohr. "The carbon emissions of aviation would be shifted and not reduced with the measures that are currently planned. As a result, Europe would become more dependent on third countries regarding transport policy. This cannot be the intention of policymakers."


SriLankan Airlines ceases Bahrain flights
April 06, 2022
SriLankan Airlines is suspending flights between Colombo and Bahrain from 12 May. “SriLankan Airlines would like to clarify that the airline is only ceasing flights between Colombo and Bahrain operated under flight numbers UL 201 and UL 202 with effect from 12 May 2022,” it says in a 2 April statement. The carrier was clarifying after an internal notice that was circulated in Bahrain created some misunderstanding over its other flights, it said. Other active services will operate as usual.


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