Travel recovery in the wake of the Covid-19 pandemic is uneven as nations vary in their progress vaccinating against the disease yet stagnant demand in some regions may be offset by returning demand in others, KLM Royal Dutch Airlines chief executive Pieter Elbers predicts. International travel is uncertain amid the restrictions set by different nations aimed at halting the spread of Covid-19 yet government co-operation can accelerate recovery, Elbers said on 8 June during a virtual discussion hosted by the International Aviation Club of Washington DC. The latest forecast by air traffic manager Eurocontrol states that air travel in Europe "is not expected to reach 2019 levels until 2024 at the earliest", which makes Elbers sceptical. "I would have difficulty saying it's going to take years," Elbers says of international recovery, adding that "there are going to be some specific parts that will take longer". "I would see no reason why Europe and India would take four years to come back," he says of that international route network. The first priority should be to reopen travel between the European Union and the USA, he says, and then "other nations will follow". The USA and EU can "support the travellers who are willing to start travelling again" by agreeing on a unified set of vaccine passports or other standard that governments would recognise to enable recovery of transatlantic travel, he says. A revival of transatlantic travel could inspire other nations to unravel what he calls a "patchwork" of restrictions. KLM has firm orders for 10 Boeing 787-10 aircraft to boost its current fleet of 109 aircraft in service, Cirium fleets data shows. The flag carrier is phasing out its Airbus A330 aircraft. Its 777 and 787 jets will be "the foundation" of its long-haul flights, Elbers says. KLM's low-cost subsidiary Transavia generates 10% of the flag carrier's business, with another 10% generated by its cargo operations. Air freight became increasingly important for KLM during the pandemic as the worldwide grounding of passenger aircraft led to a plunge in air freight capacity, creating more demand for cargo flights on KLM's 747 and 777 aircraft. Low-cost carriers have also become increasingly important during the pandemic, Elbers says, making Transavia a more significant part of KLM's future. During the pandemic in Europe low-cost carriers "Wizz Air and Ryanair have emerged even bigger" and increased their market share in the region compared with 2019, he says, while Transavia has expanded its operations in France. "We are very well positioned but we cannot rest on our laurels" he says, adding that competition from LCCs will be "a very strong force to reckon with" even as the Covid-19 crisis eventually wanes. Leisure travel is leading the recovery, so Elbers says KLM has reopened routes in Southern Europe for the summer travel season and has flights planned to Orlando during the winter season. The KLM executive is sceptical about predictions that business travel may never recover to 2019 levels and expects "incremental month-to-month recovery" by the end of 2021. "For sure in 2022, there are going to be budget discussions for companies" about how much they want to resume business travel, he says. Continuing his theory that an uneven recovery will balance out, he says "probably one segment of business travel will remain low but another will recover". Digital video chats have become more widely used during the pandemic but he says "I don’t think it will massively replace travel".

Australia's Regional Express has revised its interim profit guidance for the current financial year (FY) ending 30 June. The operator is expecting a full-year statutory loss before tax of about A$15 million ($12 million), it says in a statement today. “The latest Covid-related state border restrictions and lockdowns have severely disrupted Rex’s domestic and regional networks, forcing Rex to cancel a large number of flights to/from Melbourne.” In an interim guidance dated 10 May, Rex said it expected to break even by the end of FY2021.

China Southern Airlines has received a three-year, CNY1 billion ($156 million) entrusted loan from its parent company.
The funds bear 3.85% interest, reflective of China's loan prime rate, and may be redeemed early, in part or in full, China Southern Airlines says in a Shanghai Stock Exchange disclosure dated 4 June. The loan is extended by China Southern Airlines Group Finance Company, a subsidiary of China Southern Air Holding, and requires no guarantee. The airline states: "The funds will support the [airline's] efforts to develop a Beijing Daxing [International airport] hub, help to diversify the company's funding sources, and increase its overall competitiveness." The loan has been disclosed as a related transaction. China Southern Airlines Group Finance Company currently has no outstanding loans to China Southern Airlines.