Cash negative throughout 2021.
That’s the bottom line in a newly released analysis by IATA of the airline industry’s expectations for the coming 12 months.
Back in November 2020, IATA’s analysis had indicated that airlines would turn cash positive in the fourth quarter of 2021; however, now at the industry level, airlines are now not expected to be cash positive until 2022.
Estimates for cash burn in 2021 have ballooned to the $75 billion to $95 billion range from a previously anticipated $48 billion.
Factors playing into IATA’s estimate, include:
Weak Start for...
According to GlobalData, the low-cost airline model will lead post-COVID recovery and help revitalize demand.
The data and analytics company points out that frugal cost-cutting measures taken and operational responsiveness will see these carriers move quickly to absorb pent-up demand and capitalize on any opportunities ahead of other high-cost model airlines.
The COVID-19 pandemic has amplified consumer concerns around personal finances. GlobalData’s latest COVID-19 Recovery Survey showed that globally, a staggering 87% of respondents were ‘extremely’, ‘quite’, or...
After a United Airlines’ Boeing 777 suffered a catastrophic engine failure and had to make an emergency landing in Denver, United has removed those aircraft from service and Boeing has recommended that airlines ground all of its 777s with the type of engine (a Pratt & Whitney PW4000) that suffered a catastrophic failure over Denver on the weekend.
In a statement following the emergency, FAA Administrator, Steve Dickson said that: “After consulting with my team of aviation experts about yesterday’s (Feb 20) engine failure aboard a Boeing 777 airplane in Denver, I have...
Beginning July 1, 2021, Emirates will be offering exclusive rich content and services for travel agent partners on its NDC-enabled direct connect platform, Emirates Gateway.
At the same time (July 1), Emirates will be introducing a surcharge on all bookings made via Global Distribution Systems (GDS).
This follows the launch of Emirates Gateway in October last year, and marks a milestone in Emirates’ plans to cater to a dynamic marketplace by providing trade partners with a choice of connection options and differentiated products and benefits across channels.
Adnan Kazim,...
Transat A.T. Inc. has extended the termination date of its $250 million short-term loan facility by three months.
The facility had been arranged on Oct. 10, 2020, with Export Development Canada and National Bank of Canada as lead arranger.
The loan facility will now terminate at the earliest date between June 30, 2021, and the closing of the arrangement with Air Canada (the "Arrangement").
It may still be drawn in tranches at any time before a date now set at May 31, 2021, subject to meeting the relevant prior conditions and applicable borrowing conditions. Those conditions...
The federal government's preliminary list of authorized quarantine hotels that was released last week has now (Feb 22) been expanded.
On the web page where the quarantine hotels are listed, it also notes that hotel stopover bookings are managed by GB Travel Canada Inc., and are available by phone only.
Bookings can be made by calling 1-800-294-8253.
And it makes it clear that bookings can't be made directly with the hotel.
The list of hotels is as follows:
Calgary International Airport (YYC)
Acclaim Hotel
Calgary Airport Marriott In-Terminal Hotel
Vancouver...
WestJet is temporarily suspending its operations to St. John's, N.L., London, Ont., and Lloydminster and Medicine Hat, Alta., beginning March 19 and continuing until June 24, 2021.
The Calgary-based carrier’s president and CEO, Ed Sims of the decision: “We have continued to operate in the face of uncertainty as domestic and international travel restrictions and quarantines have caused demand to plummet.”
Sims continued: “Unfortunately, with new and increasingly restrictive policies, we are left once again, with no other option than to suspend service to these...
The European Council has adopted two sets of temporary rules to support the transport sector, which continues to be heavily impacted by the coronavirus pandemic.
Relief from airport slot use requirements will protect airlines and prevent the environmental harm that would be caused by running empty flights merely for the sake of keeping the slots for the next year. An extension of the possibility to temporarily prolong the validity of driving licences, roadworthiness tests and other specific licences, certificates and authorizations will help transport operators and citizens who...
Sunwing has launched an Early Booking Bonus on future vacation packages during its Freedom 21/22 Sale.
The sale will give Canadians something to look forward to and features exclusive discounts and special perks on select vacation packages booked by March 31, 2021, for the freedom of travel between Nov. 1, 2021, and April 30, 2022.
Dr. Peter Nord, acting Chief Medical Advisor for Sunwing Travel Group and Chief Medical Officer at Medcan, observed that: “Almost a year of quarantining and months of gloomy winter weather is starting to take its toll on Canadians.”
Dr. Nord...
WestJet has hired Dr. Tammy McKnight as the airline's first Chief Medical Officer (CMEDO).
Dr. McKnight will be responsible for assisting WestJet in developing and implementing initiatives relating to the health and well-being of WestJetters and guests.
This will include furthering the airline's commitment to mental health, advising on risk mitigation efforts, and making health recommendations to meet or exceed regulations and in line with the varying guidelines in which a global airline operates.
This work was previously spread among multiple service providers and internal roles...