Russia’s S7 Airlines is cancelling all international flights from March, following imposition of Western sanctions against the country over the past week. A message on the carrier’s Telegram account states that “unfortunately” it has been “forced” to take the decision, although it does not mention the specific actions that are preventing it from operating on any of its international routes. As well as 93 destinations in Europe, including Russian domestic links, the carrier flies to 21 locations in Asia, plus the United Arab Emirates and Egypt, data shows. Although most European airspace is now closed to Russian carrier’s, Asia remains open. “Passengers of cancelled flights will receive notifications from the airline, our specialists will work with them at S7 Airlines representative offices,” states the carrier. “They will help tourists return home on flights of partner airlines. Also, passengers of cancelled international flights can apply for a full refund of the ticket price after receiving an SMS about the cancellation of the flight.” Through the first six months of last year, S7 was the most active carrier in Europe by number of passenger flights, as it was largely protected from pandemic impacts by Russia’s large domestic market. S7 operates a majority Airbus A320-family fleet, plus some Boeing and Embraer aircraft.

Cebu Pacific is ramping up its domestic network by resuming services to more destinations and adding more flights to key hubs. The Philippine low-cost carrier says it is recommencing flights to Siargao and Surigao via Manila, Calbayog via Cebu, Iloilo and Zamboanga via Davao, and General Santos via Iloilo. Starting 27 March, the carrier will operate up to 16 daily flights from Manila and Boracay and up to seven times daily to Bohol. It will also fly to Cagayan de Oro up to 10 times daily, up to 18 times daily to Cebu, 10 times daily to Davao and three times daily to Iloilo.

Lufthansa Group is forecasting a strong bounceback in traffic for the middle of the year, as capacity on short and medium haul routes approaches pre-pandemic levels and bookings even surpass them. Announcing its full-year 2021 results, Lufthansa has revealed that capacity will be increased to 85% of 2019 levels for the summer and 95% on short- and medium-haul routes, up from a low of around 21% at this point last year and 60% in December. Low-cost unit Eurowings will raise capacity above pre-pandemic levels, while across the group it should reach around 70%. “In February, our customers have booked more flight tickets than at any time since the beginning of the pandemic,” it notes. “The number of bookings for the Easter and summer holiday periods has almost reached the level of 2019. To some destinations, the number of bookings has even tripled (compared to 2019).” Sales to the USA and Mediterranean have been particularly strong, it adds. Annual losses for the full year 2021 reduced to €1.8 billion ($2 billion) from €5.2 billion in 2020. The group attributes this to its efforts to slash costs and “renew itself” with greater efficiency. Compared with pre-crisis performance, a reduction of 30,000 in staff count, plus other measures, will reduce overall costs 15-20%, it estimates, efficiencies of 10% having already been achieved. “We have decisively and consistently advanced and implemented the transformation and restructuring of the company,” states group chief executive Carsten Spohr. “Today, the Lufthansa group is more efficient and more sustainable than before the pandemic.” He adds: “We are very certain that air traffic will experience a strong upswing this year. Our strategy of expanding the private travel segment has proved successful and is paying off. People want to travel.” Revenues came in at €16.8 billion, an increase of nearly a quarter on 2020. The group returned to profit for the summer months before being blown off course by Omicron. Cargo earnings rose to €1.5 billion, ”the best result of its history”, on the back of an ongoing lack of passenger freight capacity and shipping supply-chain problems. Potential threats include higher air traffic and airport charges, as well as fuel costs. “However, the group expects to be significantly less affected by this cost inflation than its competitors. It has, for example, started to hedge at an early stage against rising fuel prices and the increase in the cost of emissions certificates.” Mark Simpson, an analyst at investment firm Goodbody, highlights revenues slightly above consensus and liquidity of €9.4 billion, also above medium-term targets. “Overall, the beat at sales level is reflective of the recovery dynamics which we expect the sector to benefit from this summer. However, we still favour exposure to the LCC sector over flag carriers.”