Omicron variant has put airlines under more pressure
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A long-awaited recovery into uncertainty has been caused by rapid and still-evolving border restrictions in response to the omicron variant.
The emerging coronaviruses wave has put airlines under even more pressure as they navigate rules that vary by country and are being revised daily as more information comes to light about the strain.
Carriers slashed 151,000 flights globally through February. 1 in the first week of the new variant appearing, or 2.9% of the schedule as it stood on Nov. 24, according to data compiled by BloombergNEF.
The data provides an early view of the scale of damage omicron has caused so far. Airlines have made a lot of cuts this week but held back further in the calendar, suggesting a higher number of cancellations are in store as the variant is identified in more countries.
Aviation executives who had recovered in their sights less than two weeks ago called for a more uniform response.
Jeffrey Goh, the chief executive officer of the 26 member Star Alliance, said Omicron brought to the fore that we are not as coordinated as we should be. International leadership is still wanting, according to Jeffrey Goh, chief executive officer of the 26 member Star Alliance. Researchers and governments are trying to get a grip on how deadly omicron is, how easily it spreads and how resistant it is to current vaccines.
In order to slow the spread of the variant, governments have tightened entry rules, banned flights and reintroduced quarantine measures.
Air travel can be a confusing proposition for those who are able to consider it due to the fact that requirements vary and can change quickly. The U.K. added a pre-flight test requirement for all incoming travelers over the weekend, while the U.S. said it is reviewing policies on a daily basis. Japan stopped all inbound flight reservations because of a plan to stop inbound flight reservations.
British Airways called the latest U.K. measures completely out of step, while Deputy Prime Minister Dominic Raab defended what he called a balanced approach. There is a danger of entry rules changing mid-flight, leaving passengers stuck at their destination and perhaps not even allowed back home.
There is going to be an immediate short-term setback, Goh said in an interview last week.
After first being detected in southern Africa, Omicron has reached more than three dozen nations. The exact nature of the threat may not be clear for weeks, but governments have rushed to impose clampdowns after many were ambushed by the delta variant months ago.
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Asia has been hardest hit, where a budding ramp-up in flying has been undone. Eastern Europe, where infections are surging, has seen an impact, according to BloombergNEF.
Western Europe and the U.S. have held up better, and even sub-Saharan Africa has escaped the worst impacts, with carriers such as Delta Air Lines Inc. and Virgin Atlantic maintaining flights.
South Korea has imposed a 10 day quarantine and is weighing curbs on domestic activity, and Singapore is keeping most of its vaccinated travel lanes open, but it has put the brakes on any new ones.
Airline shares have been zig-zagged over the past two weeks. They rose to Europe on Monday after Anthony Fauci, U.S. President Joe Biden's chief medical adviser, said on Sunday that he was encouraged by early signs that omicron infections weren't that severe easing concerns over the variant that caused the disease.
The airline industry is going to have to deal with more disruption next year.
Goh said that the confused response to omicron does not necessarily bode well for the next variant, because it is just that there needs to be clarity on what those travel rules and restrictions are. Fauci says the U.S. is reviewing travel restrictions on daily basis.
Omicron cases now stretch from the U.S. to Malaysia.
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