Air travel picks up but high fuel price may hurt airlines -IATA

IATA director general Willie Walsh

DUBAI: The global air travel industry's recovery from the COVID pandemic was gaining momentum, but high fuel prices will put pressure on airlines, the head of the world's biggest airline trade body said on Wednesday.

Globally, passenger traffic in July was at about 75% of pre-pandemic levels, helped by strong demand for domestic services where traffic had recovered 86.9% of the level seen in July 2019, the body said.

International traffic, however, had recovered 67.9% of the pre-pandemic levels in July, lagging behind domestic demand.

International Air Transport Association (IATA) Director General Willie Walsh, on a call with reporters, described it as a "solid recovery", helped by demand in the northern hemisphere over the summer and increased domestic activity in China.

However, Walsh warned that high jet fuel prices would continue to put pressure on airlines' cost base for the rest of the year, which he described as a challenge for carriers.

"I am aware of some airlines that have embarked on hedging in recent months... just to provide themselves with some protection against the volatility that we're witnessing," he said. (Reporting by Alexander Cornwell; Editing by Edmund Blair and Bernadette Baum)

Article type: free
User access status:
Subscribe now to our Premium Plan for an ad-free and unlimited reading experience!

IATA , Willie Walsh , fuel prices , jet fuel


Next In Business News

World stocks push pause ahead of U.S. payrolls
Ringgit strengthens further to 4.38 against US dollar, highest since June
Bursa Malaysia extends after-hours trading session for selected derivatives contracts to 2.30 am
UEM Sunrise disposes 17 parcels of land for RM75.5mil
Reservoir Link wins five solar contracts worth RM12.05mil
FBM KLCI finishes lower despite positive market breadth
CIMB introduces enhanced security measures
Gold slips; set for best week in three on smaller Fed rate-hike bets
Harn Len shareholders approve bonus shares
Asian shares fall ahead of U.S. payrolls data, dollar nurses losses

Others Also Read