Airlines are scrambling to limit the impact of the latest coronavirus variant on their networks, while delays in bookings are threatening an already-fragile recovery for global tourism.
Shares in airlines performed better on Monday following a sharp sell-off Friday on the discovery of the Omicron coronavirus variant.
The latest outbreak, first reported in southern Africa, dealt a blow to the industry just as it had recovery in its sights, especially following the easing of US-bound travel.
Multiple countries including Japan, the United States, Britain and Israel have imposed travel curbs in order to slow the spread of the new variant.
“The hope for US and European carriers had been that opening the Atlantic would allow them to operate long-haul routes on a cash-positive basis, but border restrictions make it even harder to get the demand in,” said James Halstead, managing partner at consultancy Aviation Strategy.
A pickup in long-haul traffic is seen critical for many carriers, which have been left with severely strained balance sheets following the plunge in air travel last year.
Southern Africa accounts for only a tiny portion of the world’s international travel, but sudden border restrictions and route suspensions have left some carriers with an uncertain future.
Spain’s Air Europa, caught in a months-long acquisition process by IAG-owned rival Iberia, which British and European regulators have so far been loath to approve, is especially vulnerable to renewed travel curbs.
