Mideast airlines on path towards ‘normality’, says IATA chief

Airlines in the Middle East are on “a path towards normality”, said IATA director general Willie Walsh, who expects the region’s carriers to reduce pandemic-induced losses next year. Addressing Arab Air Carriers Organisation (AACO) 54th AGM in Doha on Thursday, Walsh said, for the airlines based in this region, a cumulative loss of $6.8bn was estimated for this year, with an improvement to $4.6bn in losses for 2022. “We are, however, past the worst point. And we can see a path towards normality,” Walsh noted. The cargo business is already operating at 9% above pre-crisis levels, and in the Middle East 18%. Air cargo has been a lifeline for many, delivering vaccines, PPE, medical equipment and even e-commerce. In doing so, it has also been the revenue star for many airlines in our industry.“The region’s carriers, specifically Qatar Airways, Emirates and Etihad Airways, played a critical role in this mammoth task by keeping flying throughout the crisis,” Walsh noted.Where governments have not restricted travel, the passenger business recovery has been swift. Domestic markets are expected to reach nearly 75% of pre-crisis levels by the end of this year, but unfortunately international travel — where we see travel restrictions continuing — is only expected to reach 22%.“Next year, we expect domestic markets to be nearly where they were in 2019. But international travel will lag at just 44%. “We are moving in the right direction, if not as fast as we would like to go. The task ahead is formidable. But the overall mood in the industry is one of cautious optimism. And the re-opening of the US market to 33 countries — primarily European — gives the recovery important momentum,” Walsh said.The region has done a lot of work to re-establish connectivity. Today, most of the GCC and wider Middle East region have re-established links to their primary markets. Caps on flight movements have been lifted and the UAE, Jordan, Bahrain, Oman, and Saudi Arabia have re-instated services to over 70% of their pre-pandemic networks. Connectivity in the region in September reached 49% of pre-crisis levels, outperforming global connectivity which has rebounded to 41% of pre-crisis levels. And with Thailand, Australia and United States opening from early November, this should further help strengthen connectivity. As routes reopen and airlines add services, there's the challenge of managing the myriad and complex Covid-19 travel health credentials that governments require. Paper-based solutions will overburden the check-in and immigration process. “We do not have the people or the space in airports to manage a ramp-up of travel if everyone needs to have documents checked manually. Of course, we believe IATA Travel Pass is a great product to help airlines, travellers and governments address this challenge digitally. We built it with the specific needs of industry in mind.“I’m pleased to say that this region has been a pioneer in implementing IATA Travel Pass. Qatar Airways, Emirates Airline, Etihad Airways, and Jazeera Airways are introducing IATA Travel Pass in a phased rollout across their networks. And a further seven airlines in the region are piloting the solution. Governments in the Middle East are also taking a leadership role in this area. And the initial reports that we are getting from Saudi Arabia, the UAE and Qatar are very positive,” Walsh noted.