Are the airlines prepared for a surge in bookings in 2021?

Are the airlines prepared for a surge in bookings in 2021?

We’re expecting the events industry to bounce back once the vaccine has been distributed.  Q3 of 2021 is looking good for a return to face-to-face meetings, with an expectation that meetings, conferences and exhibitions will eventually return to pre-Coronavirus levels.

Airlines are expecting an increase in leisure travel from July 2021 and business travel to start again from September, but will permanent changes in behaviour create cost and capacity issues for people flying to events?  It’s thought that around 20% of airline business in the USA is generated from event attendees.  The remainder is company meetings, training, sales and client visits and this segment could decline by up to 36% because these trips may be replaced by online meetings.

The scheduled airlines will be more affected than budget carriers, as they target the business travellers.  The frequency of flights, prices and type of aircraft is dependent on them.  Some airlines will switch to smaller planes, change the timetable and make rate changes to make routes more profitable.  The financial collapse of an airline will drive passengers to other carriers and probably increase ticket charges on popular routes.

The only requirement from an airline is that a passenger wears a mask.  The test and quarantine requirement are required by the destination country, so when planning it’s worthwhile checking the travel corridors.

What are the airlines doing?

  • Air Canada

Air Canada was first airline in North America to introduce temperature checks in May 2020. From 15th December passengers will have to present a negative Covid-19 test at check-in and it must have been taken within 72 hours before departure. A second test is needed for the return flight if the departure time is 72 hours from the first test.

  • American Airlines

From 9th December, American Airlines will sell home coronavirus testing kits to passengers travelling U.S. locations with restrictions.  Test results should be available within 48 hours of receipt at the laboratory.

  • Delta Air Lines

From 15th December, Delta is launching covid-tested flights from Atlanta to Amsterdam.  Passengers must take a PCR test five days before travel, followed by a rapid antigen test before boarding. Both tests must be negative, then a second PCR test will be taken upon arrival at Amsterdam Airport Schiphol. If the final test is negative, passengers will not need to quarantine.   This system will then be used for flights to Rome from Atlanta, JFK New York and Newark Liberty New Jersey.

  • Emirates Airlines

Emirates was the first airline to offer free Covid-19 insurance. This includes coverage for medical treatment and health expenses and quarantine costs. The offer is valid for all travel until 31st December, at no charge to customers.

Anecdotally, we’ve heard that it’s business as usual in Dubai.  There’s 22% occupancy at the beachfront hotels and 17% occupancy in town, so there are some competitive rates available.

In Australia, the boss of Qantas, the country’s largest airline, said that once a virus vaccine becomes widely available, his carrier will likely require passengers use it before they can travel abroad or land in Australia.

  • Qantas, Korean Air and Air New Zealand

These airlines are considering changing their Terms and Conditions for international travellers to make it a requirement to have a vaccination before boarding a flight.  They would like a system to electronically verify that people have had a vaccine for their intended destination

However, this would be a governmental decision, depending how safe they feel it is to open their borders again.

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