Air France-KLM has "reasonable prospects" for recovery this summer after battling the Covid-19 pandemic for 16 months, in the view of its chief executive. In a video message uploaded to YouTube on 8 July, Ben Smith says the group is committed to seizing the opportunity for recovery and saving the summer. "We now have reasonable prospects for recovery. With the gradual reopening of borders, the easing of travel restrictions and with the introduction of the European health pass last week, traffic is resuming for the summer season. But nothing is certain, the pandemic is still present," he says. Smith sees the group's low-cost brand as set for a "buoyant summer": Transavia France is operating at full capacity and Transavia Holland at 80%. Transavia France is also launching new routes domestically and in other "high growth" markets. However, the picture remains tougher for the group's main brands. Air France and KLM are operating around 65% of long-haul capacity and close to 80% on medium-haul. "This is far from ideal, especially with such historical low margins," Smith acknowledges. "While leisure bookings are picking up, we must remain vigilant. Air France and KLM's long-haul activity is in decline and the business segment has not yet recovered." Smith also reiterates that Air France-KLM must accelerate its transformation programme in order to adapt to the ever more competitive landscape emerging from the crisis. "All major airlines are significantly restructuring their business model, fleet and overall size. Low-cost airlines are becoming more of a threat due to their more favourable cost structure and financial reserves," he warns. He says Air France-KLM has made exceptional efforts to meet its two main goals of improving its competitiveness and sustainability, noting staff departures and the simplification of its fleet structure.

Aeromexico's parent has disclosed that a group of Mexican shareholders have signalled their intention to take part in equity raising at the Mexican flag carrier. The group of shareholders has informed the airline that they have carried out initial conversions with creditors and potential investors, says Grupo Aeromexico. A "material, controlling and long-term investment" is targeted. "As of this date, Aeromexico is not aware of the formalisation of any agreement and, in due course, it will inform on the execution of any agreement that might be formalised," adds the airline's parent. Aeromexico is undergoing a Chapter 11 financial restructuring process in the USA. On 22 June, it received bankruptcy-court approval for a 75-day extension to propose a reorganisation plan.

Fully vaccinated UK residents returning to England from amber-list countries will no longer be required to self-isolate from 19 July, the government has confirmed. Addressing parliament on 8 July, UK transport secretary Grant Shapps said that unvaccinated children under the age of 18 would also be exempt from quarantine on returning from amber-list countries from 19 July. The requirement to take a privately booked PCR test up to three days prior to departing an amber-list country will remain in place, as will the requirement to take another PCR test two days after returning to England. However, the requirement to take an additional test eight days after arriving will be dropped. The changes mean that the restrictions for green- and amber-list countries will "in essence" become "the same", says Shapps. As it stands, the new rules will only apply to travellers arriving in England. Decision-making "may differ" across the UK's devolved administrations, says Shapps. At first, the relaxed restrictions will only apply to UK residents who have been vaccinated in the UK. Shapps says the government is "working to extend" this to include double-jabbed arrivals who have been vaccinated in destinations including the USA and EU member states "later this summer". The government will also remove guidance stating that people should not travel to amber-list countries from 19 July. Passengers can prove their vaccination status by using the National Health Service app or by requesting a letter, says Shapps. Evidence that they have been fully vaccinated must be included on their passenger-locator form, which must be checked by the transport provider before departing from an amber-list country. No changes have been made to the restrictions that apply to arrivals from countries on the UK's red list, and they must still quarantine in a government-approved hotel for 10 days at their own expense. Airlines UK chief executive Tim Alderslade has welcomed the 8 July announcement, describing it as "a positive move towards the genuine reopening the sector has been looking for". He adds: "Opening up the market for the rest of the summer, this announcement will provide far greater opportunities to travel, do business and see family and friends, and enable many more of our customers to book with certainty."