Picture: 123RF/JAROMIR CHALABALA
After leading the industry’s recovery for much of last year, China is in retreat with airlines offering the fewest seats in six months as authorities attempt to stamp out an outbreak. Australia’s carriers are also in reverse with more than half of the country in lockdown. Southwest warned on August 11 of a slowdown in bookings and rising cancellations, and said it will be difficult to replicate July’s profit over this quarter. Low-cost airlines Frontier and Spirit Airlines have also said they may report losses for the three months through September.
“It is extremely difficult to plan and operate with the constantly changing environment,” Cathay chair Patrick Healy said on August 11, when the carrier reported a $976m first-half loss. Cathay’s shares rose 2.1% on Tuesday morning in Hong Kong, trimming the year-to-date loss to 12%. They slumped 29% in 2020. Freer borders and looser quarantine requirements are helping fill planes in Europe during the peak summer season, when carriers bring in revenue to see them through the winter months.
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