BIRD’S EYE VIEW

Lack of Global Coordination has Toppled Air Travel Demand; 151,000 Flights Slashed Globally through 01FEB

Based on a report from Bloomberg, the lack of global coordination surrounding the Omicron variant has plunged air travel demand once again and thrown recovery into uncertainty.

According to data compiled by BloombergNEF, airlines cut 151,000 flights scheduled globally through 01FEB 2022 in the first week the new variant appeared, or 2.9 per cent of all flights scheduled as of 24NOV 2021.

As airlines have yet to cancel any flights further than 01FEB 2022, Bloomberg suggests that a higher number of cancellations are in consideration as the variant is identified in more countries.

Aviation executives are calling for a more uniform response from governments. Jeffrey Goh, chief executive officer of the Star Alliance, which includes Air Canada, Lufthansa, and United, pulled no punches in stating:

“Pent-up demand will come back, it’s just that there needs to be clarity on what those travel rules and restrictions are,” said Goh, adding that the confused response to omicron “does not necessarily bode well for the next variant.”

In response to the emergence of the new variant, governments around the world have implemented travel rules and restrictions that continue to evolve as more data on Omicron emerges.

Canada’s own travel restrictions, announced on 30NOV need to be clarified by Health Minister Jean-Yves Duclos as airports are unsure of when the testing policy for travellers begins.

The U.K. added a pre-flight test requirement for all incoming travellers, while the U.S. said it’s reviewing policies on a daily basis, according to Bloomberg.

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