Another airline teeters on the brink

There are always risks associated with booking flights on small, independent airlines.

This week, Brazil-based Azul formally filed for Chapter 11 bankruptcy protection in the US.

It issued a securities filing, aiming to restructure over $US2 billion of debt, travel news hub Travel Mole reported.

There is a commitment of $1.6 billion in financing as well as up to $950 million in equity financing after exiting Chapter 11.

The airline says it has agreements with existing bondholders, lessor AerCap, and airline partners United Airlines and American Airlines to help support its restructuring.

The airline’s financial issues date back to the Covid-era shutdown.

“We had too much debt on the balance sheet that principally came from Covid, said CEO John Rodgerson.

"We now have an opportunity to clean it all up.”

Azul had been exploring a merger with Gol, and it is unclear how the bankruptcy filing will affect this.

The airline was founded in 2008 by David Neeleman, who also started the airline JetBlue in the US. The airline offers affordable flights to places in Brazil that other airlines do not service.

Azul has 166 planes and flies to 162 destinations, Wikipedia says.

It's official: Tourism figures back to pre-pandemic levels

 

Global tourism figures are back to where they were pre-Covid, the UN Tourism organisation has declared.

With 1.4 billion international tourist arrivals recorded globally, 2024 marked the recovery of international tourism from the worst crisis in the sector’s history.

A majority of destinations welcomed more international tourists in 2024 than they did before the pandemic, while visitor spending also continued to grow strongly.

The latest World Tourism Barometer from UN Tourism says an estimated 1.4 billion tourists travelled internationally in 2024, indicating a virtual recovery (99%) of pre-pandemic levels.

This represents an increase of 11% over 2023, or 140 million more international tourist arrivals, with results driven by strong post-pandemic demand, robust performance from large source markets and the ongoing recovery of destinations in Asia and the Pacific.

Growth is expected to continue throughout 2025.

The Middle East (95 million arrivals) remained the strongest-performing region when compared to 2019, with international arrivals 32% above pre-pandemic levels in 2024, although only 1% higher compared to 2023.

Asia and the Pacific (316 million) continued to experience a rapid recovery in 2024, though arrival numbers were still at 87% of pre-pandemic levels, an improvement from 66% at the end of 2023.

"In 2024, global tourism completed its recovery from the pandemic and, in many places, tourist arrivals and specially earnings are already higher than in 2019," said UN Tourism secretary general Zurab Pololikashvili.

"Growth is expected to continue throughout 2025, driven by strong demand contributing to the socio-economic development of both mature and emerging destinations. 

"This recalls our immense responsibility as a sector to accelerate transformation, placing people and planet at the centre of the development of tourism."

Among the world's top five tourism earners, the United Kingdom (+40%), Spain (+36%), France (+27%) and Italy (+23%) saw robust growth in the first nine to eleven months of 2024, compared to 2019.

Qantas promises return to pre-Covid flight levels

Qantas has announced plans to boost its international network with extra flights, more aircraft and new routes as it restores capacity in line with what it describes as "strong travel demand and the broader recovery of the aviation industry".

From late October 2023, the Australian national carrier will add around one million seats to its international network over 12 months compared to its current schedule, offering customers more choice to destinations across Asia, the United States and the Pacific.

The additional capacity will be made possible through a combination of more Qantas aircraft returning to service, new aircraft joining the fleet and an arrangement with oneworld partner Finnair to operate two Airbus A330 aircraft on two Qantas routes.

The network changes will see the group’s international capacity grow to around 100% of pre-Covid levels by March 2024, up from 44% 12 months ago and 84% right now.

Qantas said it has employed 2,400 pilots and cabin crew since borders reopened; and said a further 300 people will be needed by the end of the year.

The announcement came as Qantas prepares to resume San Francisco flights next week and launch its inaugural service from Sydney to New York via Auckland next month. Seasonal services to Rome and flights between Melbourne and Hong Kong will resume in June.

“The rebound in demand for international travel since borders reopened has been incredibly strong and this boost to our network will add hundreds of thousands of seats in time for the busy Australian summer holiday period,” said Qantas CEO Alan Joyce.

“Qantas has been the most on-time major domestic airline for the past eight months in a row and that improved performance means we can release some of the aircraft we’ve had in reserve. That reflects more parts of the aviation supply chain returning to normal and it’s a huge credit to the hard work of our people across the group.

“While airlines globally are working to restore capacity to meet demand, there is still a mismatch between supply and demand for international flying. But with more of our aircraft back in the air, new 787s joining our fleet and our contract with Finnair, we’ve got more seats for our customers and more opportunity for Qantas crew as we increase our own flying.

“We know our customers are looking for great value and this additional capacity will also put downward pressure on fares.”

Global tourism is bouncing back, says UNWTO

International tourism is well on its way to returning to pre-pandemic levels, with twice as many people travelling during the first quarter of 2023 than in the same period of 2022.

That's the very positive news from the United Nations World Tourism Organisation (UNWTO).

The second UNWTO World Tourism barometer of the year shows that the sector’s swift recovery has continued into 2023. 

It reveals that overall international arrivals reached 80% of pre-pandemic levels in the first quarter of 2023; and that an estimated 235 million tourists travelled internationally in the first three months of the year, more than double the same period of 2022.

The UNWTO says tourism has continued to show its resilience with revised data for 2022 showing over 960 million tourists travelling internationally last year, meaning two-thirds (66%) of pre-pandemic numbers were recovered.

Driven by strong intra-regional demand. Africa reached 88% and the Americas about 85% of 2019 levels while Asia and the Pacific lagged behind with 54% of pre-pandemic levels.

This upward trend is set to accelerate now that most destinations, particularly China, have re-opened.

UNWTO Secretary-General Zurab Pololikashvili says: “The start of the year has shown again tourism’s unique ability to bounce back. In many places, we are close to or even above pre-pandemic levels of arrivals.

"We must, however, remain alert to challenges ranging from geopolitical insecurity, staffing shortages, and the potential impact of the cost-of-living crisis on tourism, and we must ensure tourism’s return delivers on its responsibilities as a solution to the climate emergency and as a driver of inclusive development.”

Image: Zeina Kassem, Scop.io 

Travel is back baby, as airlines start turning a profit

The travel industry continues its post-Covid bounce back with airlines starting to report positive figures.

IAG, the parent company of British Airways, reported this week that it saw a quarterly January to March profit for the first time since 2019.

BA made €9m (£7.9m) in operating airline profit, citing higher yields with lower fuel costs for the turnaround, Travel Mole reported.

It lost £660m during the same period in 2022.

Routes from Europe to both North and South America have recovered to pre-pandemic levels, IAG said, but it reported business travel is still sluggish.

“IAG has delivered a strong first quarter financial performance, as group airlines recovered capacity to close to pre-pandemic levels,” said CEO Luis Gallego.

“All our airlines performed above expectations.

“We are seeing healthy forward bookings with leisure demand strong.”

IAG says it will still be slightly short of a full pre-pandemic recovery by the end of 2023 but expects to be at 97% of 2019 levels by then.

The IAG company also operates airlines including Iberia, Aer Lingus and Vueling.

Covid no longer a global health emergency, says WHO

Covid is no longer a global health emergency, the World Health Organisation declared this week.

WHO director general Tedros Adhanom Ghebreyesus (above) said the epidemic has been downgraded and confirmed cases and deaths have been on a downward trend for over a year.

“This trend has allowed most countries to return to life as we knew,” Tedros said.

“It’s therefore with great hope that Covid-19 is over as a global health emergency.”

The WHO declared Covid an emergency in late January, 2020 and nearly seven million people have died from the virus globally since then.

Tedros says there is still some risk of a new variant, which could lead to another surge in cases, Travel Mole reported.

He urged governments to remain vigilant as global travel patterns start to return to normal.

“This virus is here to stay and still changing,” he said.

"In early 2020 the virus caused an unheard of global shutdown travel and border.

“It has been so much more than health crisis.

“It has caused severe economic upheaval, disrupting travel and trade, and plunging millions into poverty.”

Dr Kate O’Brien, director of WHO’s Department of Immunization, Vaccines and Biologicals, said that declaring the end of Covid-19 as a global health emergency does not end vaccination efforts.

Covid vaccine coverage for individuals at high risk remains “far too low” in many countries, such as in the African continent.

Japan to end all Covid border control measures

Japan - which has imposed some of the toughest pandemic crackdown measures in the world - will end all Covid border control measures next month.

That means proof of vaccination or a test will no longer be required as of May 8.

From that date Covid-19 will then be classified in Japan as a common disease, Travel Mole reports.

Currently, all arrivals must present proof of at least Covid vaccination jabs, or a negative test taken within 72 hours of departure.

The move is expected to help boost Japan tourism, which is in recovery mode.

In November, 2021, Japan tightened border controls by barring the entry of all non-resident foreigners and by requiring returning Japanese nationals and foreign residents to quarantine at designated facilities.

Initially implemented for a month, the control measures were later extended, sparking protests from foreign exchange students and business people.

The country started gradually easing the daily entry cap in March 2022 before completely lifting it in October of that year.

Fiji drops all entry requirements

International travellers to Fiji are no longer be required to provide proof of Covid-19 vaccination and hold travel insurance.

The final set of entry requirements to visiting the Pacific island nation were removed this week, Travel Mole reported.

Fiji welcomed 636,312 visitors in 2022, a strong recovery that surpassed targets.

Tourism Fiji CEO Brent Hill said: “The industry welcomes the decision to remove all restrictions and invites the world to come and experience Fiji.

“We still strongly encourage travellers to have travel insurance and take the necessary precautions.”

Until now, all adult arrivals were required to produce proof of full vaccination and travel insurance, which is still encouraged.

About 95% per of Fiji’s adult population is vaccinated.

"Fiji now has zero travel restrictions and offers a safe and relaxing holiday for travellers from all over the world," says the Fiji Tourism website www.fiji.travel 

Image: LikuLiku Lagoon Resort, Fiji 

Singapore scraps Covid control measures

Singapore has been known for its tough Covid pandemic controls but now the Asian nation is abandoning all remaining restrictions.

Singapore officials have dropped Covid to the lowest disease alert level and masks are no longer mandatory on public transport from Monday.

The Ministry of Health does, however, still recommend the wearing of masks in crowded public spaces, and local media reported that around 95% of commuters on Monday were still wearing masks.

Singapore has also scrapped Covid border measures.

Travellers no longer have to show proof of a negative test regardless of whether they have been vaccinated or not," Travel Mole reported.

Travel insurance is also no longer mandatory for unvaccinated tourists. 

Image: Gabriel Babierra, Scop.io

Changing the Covid rules on a daily basis

Rule number one of tourism: make sure your guests are comfortable and know what to expect.

That is a rule than Thailand authorities have broken this week with Covid restrictions making a sudden, unexpected return.

As borders in China reopen, Thai officials have said that tourist arrivals are required to have has at least two Covid vaccine shots.

Very little advance warning.

But all international visitors will be treated equally said Public Health Minister Anutin Charnviraku, making the point that China cannot be openly snubbed.

Gourmet on the Road's Thai correspondent reports: "It's probable that most travellers to Thailand, having experienced few or no restrictions in their own country for many months, no longer give Covid a second thought and certainly wouldn't think it necessary to carry proof of vaccination with them to a country which, until today, also had no restrictions.

"And that's even if they heard of the sudden new restrictions before going to the airport."

Thai media reports this morning said that thousands of hotel room nights and some charter flights had been cancelled as a result of the requirements.

But it was also reported that some passengers may be allowed to fly but having to take a Covid test on arrival at airports like Bangkok's Suvanarbuhmi (above).

Confusing and not comforting.

"There are going to be many disappointed and angry passengers being refused boarding, and who will probably decide after losing the money spent on flights and hotels that Thailand simply isn't worth the risk in future," our correspondent reports.

Update: Within 24 hours officials had again changed their minds. Thailand rescinded the entry policy announced at the weekend requiring visitors to show proof of a Covid-19 vaccination.

The Tourism Authority of Thailand (TAT) said it "would like to clarify that Thailand continues to welcome all international tourists".  It said foreign tourists are not required to show ATK or RT-PCR test results.

We await tomorrow's update. 

Covid-riddled cruise ship turned away from Bali

Cunard's website proclaims that passengers can "cruise in confidence" but Indonesian authorities have ordered the Covid-affected Queens Elizabeth to abandon the Balinese leg of its current 17-day cruise following a pandemic outbreak.

The Queen Elizabeth is carrying around 2100 passengers and crew on a 17-day cruise, the Sydney Morning Herald reports.

The Queen Elizabeth left Sydney on November 15, stopping at Airlie Beach, Cairns, Port Douglas and Darwin, the newspaper reported, but will cut short the final week of its tour and head straight to Fremantle.

A spokeswoman for Cunard, owner of the ship, confirmed there was “an elevated level of transmission” on board, but declined to provide case numbers, the SMH said.

“Unfortunately, due to the ongoing rise in community transmission across Australia and this being reflected on various cruise lines, we’re unable to visit Indonesia at this time,” she said.

“This has followed ongoing conversations with the respective authorities in Bali, and we understand and respect the current circumstances we’re operating in. In light of this, we will sail into Fremantle in the coming days as planned.”

The cruise liner's next voyage is scheduled to begin on December 2, when it will return to Sydney via Esperance, Adelaide, Kangaroo Island, Melbourne and Burnie.

Hong Kong planning to offer free flights

Hong Kong is considering dishing out 500,000 free airline tickets in a bad to fast-track its post-Covid tourism recovery.

Hong Kong has started easing some Covid curbs in recent weeks and the government is in discussions with airlines. It plans to launch the free ticket campaign once airlines build back their schedules, Travel Mole reported.

The plan - to be implemented in 2023 - could cost $389 million dollars (Aus). 

“The airport authority will finalise the arrangement with airlines," said said Dane Cheng, executive director of the Hong Kong Tourism Board.

"Once the government announces it will remove all Covid-19 restrictions for inbound travellers, we’ll roll out the advertising campaigns for the free tickets."

One airline that will not be involved is Virgin Atlantic, which announced this week it will cease flying to Hong Kong after serving the city for 30 years.

Until recently Hong Kong had some of the world's toughest rules as it followed China's Covid policies

But it has now dropped hotel quarantine and the requirement for a negative pre-travel Covid test.

Aviation industry bouncing back post Covid

Several airlines are still struggling to cope with the fast-growing demand for flights post-Covid, but the industry as a whole is bouncing back fast.

The International Air Transport Association’s latest data for July 2022 shows the recovery in air travel continues to build.

Total traffic in July 2022 was up 58.8% compared to July 2021 and globally, traffic is now at 74.6% of pre-Covid levels, Travel Mole reports.

International traffic rose 150.6% against figures for July 2021.

All markets reported strong growth, led by the Asia-Pacific region.

Asia-Pacific airlines posted a 528.8% rise in July traffic compared to last year, the strongest year-on-year rate across all regions.

“July’s performance continued to be strong, with some markets approaching pre-Covid levels," said IATA director general Willie Walsh.

"This is even with capacity constraints in parts of the world that were unprepared for the speed at which people returned to travel.”

Image: Val Gabriel Atendido, Scop.io

  

A big Korea move for travellers

As of today, travellers to South Korea will no longer have to take a Covid-19 test prior to boarding their flight.

A post-arrival test is, however, still required, national news agency Yonhap reported.

The test will be applicable to all Koreans and foreign nationals regardless of vaccination status.

Once they have arrived, all travellers must take a PCR test within one day of landing at the airport.

Peck Kyong-ran, commissioner of the Korea Disease Control and Prevention Agency said the pre-arrival Covid-19 test requirement could be reinstated if the Covid situation deteriorates.

Over the past week South Korea has recorded a reduced number of around 90,000 cases on average a day, Travel Mole reported. Cases peaked at 180,000 a day in mid-August

South Korea is among the Asian region’s last economies to hold onto strict border controls, though China, which has an ultra-strict “zero Covid” strategy, Japan and Taiwan continue to impose extensive barriers.

Other Asian countries including Thailand, the Philippines, Malaysia and Indonesia have lifted testing requirements in recent months as the region welcomes back travel after relying heavily on border restrictions earlier in the pandemic.

South Korea lifted quarantine requirements for vaccinated tourists in April and dropped quarantine for all arrivals regardless of vaccination status in July.

Tourists have been slow to return, however, with passenger traffic at main gateway Incheon Airport in July reaching less than one-quarter of pre-pandemic levels.

Japan makes entry easier for vaccinated tourists

Japan, which has been among the most cautious countries in opening up after Covid, is lifting pre-entry Covid-19 testing for fully vaccinated travellers with at least one booster shot.

Prime Minister Fumio Kishida announced that the change will be effective from September 7, Travel Mole reported.

“We plan to gradually ease border controls to allow entry procedures to be as smooth as those of other countries,” Kishida said.

“We will speed up our efforts while balancing infection measures and social and economic activities.”

Japan is one of the last major countries to drop pre-travel testing, although neighbours China and South Korea still require it.

The isolation period for people who test positive will also be reduced but Japan will continue to insist on a cap of 20,000 inbound daily visitors. Tourists are currently only allowed as part of a tour group.  

Inbound tourism so far has been sluggish with just 387,000 visitors this year, the Japan National Tourism Organisation reported.

Before the pandemic, Japan had around 32 million foreign visitors in 2019 but the number plunged to around 246,000 in 2021.

Malaysia throws open its doors to tourists

Malaysia has this week ended all remaining Covid-19 entry restrictions for foreign arrivals.

Health director-general Tan Sri Dr Noor Hisham Abdullah confirmed all Covid entry requirements have been scrapped, allowing both vaccinated and unvaccinated tourists to enter the Asian nation.

Unvaxxed travellers were previously required to follow strict testing requirements, while vaccinated travellers had to show proof of vaccination in the MySejahtera app.

“However, vaccination requirements are still subject to any airline’s regulations,” Dr Noor Hisham said.

"The Traveller’s Pass no longer needs to be filled in, regardless of their vaccination status.

“Upon arrival, if a traveller is detected with a fever through the thermal scanners or found to be unwell through self-referral by the traveller, they will be referred for re-examination by medical authorities.”

Masks are still required indoors and on public transport in Malaysia, Travel Mole reported.

Image: Petronas Towers, Kuala Lumpur. Kate Bagoy on Scop.io 

New blow to Japan's tourism industry

Japan's struggling tourism industry has been dealt another Covid blow.

A plan to start a tourism subsidy program has again been shelved due to rising Covid infections.

“We concluded that now is not the time to start the nationwide subsidy program,” said tourism minister Tetsuo Saito.

He said the government will assess the spread of infections and hospitalisations before deciding when the scheme will start.

“There were strong expectations among those involved in the tourism and transportation sector for the national discount program,” Saito said.

“But considering the infection situation, we had no choice but to postpone.

“We’ll implement the program as soon as the infection situation improves,”

A separate subsidy program allowing people to travel within their own prefecture or within specific regional areas will continue, Travel Mole reported.

The latest wave of Covid is the Omicron variant known as BA.5, and all 47 prefectures have reported increases in cases.

The number of new cases in the week to July 12 has doubled.

The government said there are no plans yet to impose any restrictions on activities.

While the country has reopened its borders to tourists on guided group tours, it’s still not open to independent travellers. |

South Africa throws open its doors

South Africa is the latest travel destination to throw caution to the wind and scrap remaining Covid-19 entry rules.

There is no longer a requirement to show proof of vaccination or present a negative Covid-19 test result on arrival.

Tourism minister Lindiwe Sisulu said the scrapping of requirements will give the South African tourism industry a much-needed boost.

Mandatory masks in indoor public spaces and the cap on gatherings have been dropped.

Indoor venues can also now operate at full capacity, Travel Mole reports.

Italy drops Covid restriction measures

There is good news for anyone heading to Italy from this week onwards.

In a positive move for vaxxed travellers packing their bags for an Italian summer holiday, Italy has dropped mandatory mask wearing on public transport and in indoor venues from June 15 - just in time for the official start of summer.

With travellers already able to enter Italy without a Green Pass or equivalent certificate since June 1, removing the need to wear masks on planes, trains, buses, ships, and ferries - as well as in theatres, cinemas, concert halls, indoor sports events, and live music venues - is the final step in the country’s timeline of containment measures.

“We are delighted to share this news ahead of the busy summer tourism season, and we know the thousands of local travellers heading to Italy soon will be pleased to hear that they’ll be visiting the Italy they know and love as things return to normal,” said Emanuele Attanasio, manager Australia and New Zealand at the Italian National Tourist Board.

“Of course, mask wearing is still an option for those who feel more comfortable, and mandatory masks will remain in schools and healthcare settings.”

For further information on the requirements for entry to Italy, visit www.viaggiaresicuri.it/

Image: Conegliano in the Veneto, where I aim to be drinking Prosecco DOCG next week. 

Hapless airlines cut flights at a time demand is surging

Air fares have gone through the roof as the whole world wants to travel again post Covid lockdowns.

But major airlines have been caught short by the renewed demand - with some still cutting their schedules at a time when more people than ever want to fly.

American carrier Delta is the latest airline to trim its northern summer schedules, citing labour shortages and supply chain issues as the reason for its inability to run full schedules effectively.

To avoid potential disruption (and underline its incompetence) Delta will slash 100 flights a day during the summer, Travel Mole reports.

The cuts will last from July through to August 7.

The cuts will affect flights that Delta serves across the US and Latin America.

Weather, vendor staffing, increased Covid case rates are contributing to higher-than-planned unscheduled absences in some work groups,” Delta said in a statement.

"More than any time in our history, the various factors currently impacting our operation - weather and air traffic control, vendor staffing, increased Covid case rates contributing to higher-than-planned unscheduled absences in some work groups - are resulting in an operation that isn't consistently up to the standards Delta as set for the industry in recent years," Chief Customer Experience Officer Allison Ausband said.

High demand for flights has seen average fare prices surge, but the airlines can't get their acts together.

Other carriers - including JetBlue and Alaska Airlines - have cut schedules to minimise operational issues. Shareholders - and potential customers - should have serious questions.