Your weekly travel and aviation Quote-a

22 April, 2022

At a time of crisis, it is important that we share our insights and experience, helping each other to contain and mitigate the impact of COVID-19. CTC - Corporate Travel Community each week brings you a roundup of the most thought-provoking and interesting comments from those industry leaders in the know.

Virgin Australia CEO: 'I think ticket prices will go up'

Virgin Australia CEO Jayne Hrdlicka said: "Fuel prices are at unprecedented levels right now", noting "I think ticket prices will go up". Ms Hrdlicka said jet fuel is "twice what it was a year ago".

AirAsia Aviation Group CEO: Testing requirements should 'constantly be reviewed'

AirAsia Aviation Group CEO Bo Lingam stated travel testing requirements in the Asia Pacific region, including the number and type of tests involved, should "constantly be reviewed to ensure that they remain relevant, without burdening travellers nor compromising public health". Mr Lingam said: "Another key issue faced by air travellers is the additional paperwork and various, unstandardised entry applications required by different countries". He added: "These too should be urgently reviewed as the current processes tend to be duplicative and [are] causing confusion amongst travellers".

Tourism New Zealand CEO: 'It will take time for all the different parts of the system to get going'

Tourism New Zealand CEO Rene de Monchy said "It will take time for all the different parts of the system to get going again", with expectations that the country may reach 20% or 25% of pre-coronavirus visitor revenue, over a yearly period. As New Zealand's Government seeks to increase quality experiences over tourism numbers, Mr de Monchy said "When I'm talking about a 'high quality' visitor, it's not one profile", adding "it means we really look well beyond just targeting financially rich people".

American Airlines CEO: High US domestic travel demand offsetting weaker international and business travel

American Airlines CEO Robert Isom stated high US domestic leisure travel demand is offsetting weaker business and international travel experienced by the airline. This follows the carrier reporting 1Q2022 capacity down 11% from 1Q2019 levels.

LanzaTech CEO: Sustainable aviation fuel 'on a path to exponential growth'

LanzaTech CEO and LanzaJet chairperson Jennifer Holmgren stated the target of 10% sustainable aviation fuel use by 2030 "is achievable because so many of the [waste based] technologies are past the demonstration stage". Ms Holmgren added: "I think we're on a path to exponential growth".

Delta Air Lines president: US and Latin American revenues lead carrier's recovery

Delta Air Lines president Glen Hauenstein, via the carrier's 1Q2022 earnings call, stated US domestic and Latin American revenues continue to lead the carrier's recovery. Mr Hauenstein added the carrier expects a "very strong" summer for the trans-Atlantic market based on demand trends, with eased travel restrictions in major international markets "unlocking" demand for long haul travel. The carrier reported total passenger revenue of USD6907 million for 1Q2022, and overall net loss of USD940 million.

airBaltic halves net loss in 2021, 'on a strong path to recovery': CEO

airBaltic CEO Martin Gauss commented: "We are now on a strong path to recovery and are actively recruiting additional staff to maintain the high level of connectivity we provide to the Baltic region. The forward bookings in the first quarter of 2022 are significantly above the previous year and confirm a very positive development out of the crisis".

Swoop president: Increasing jet fuel costs will result in higher airfares for LCCs

Swoop president Bob Cummings stated increasing jet fuel prices will result in higher airfares despite LCCs' attempts to prevent labour and fuel expenses from being passed on to customers. Mr Cummings added he nevertheless expects summer bookings to exceed pre-pandemic levels.

easyJet CEO reports carrier is 'confident' in plans to restore pre-pandemic capacity by summer 2022

easyJet CEO Johan Lundgren stated the carrier's operational results for the six months ended 31-Mar-2022 was driven by "improved trading" resulting from the UK Government easing COVID-19 testing requirements. Mr Lundgren added the carrier has maintained its positive trajectory, resulting in a "positive outlook" for the Easter period and beyond. The carrier's forecast daily booking volumes for summer 2022 are currently exceeding 2019 levels. Mr Lundgren stated: "We remain confident in our plans which will see us reaching near 2019 flying levels for this summer and emerge as one of the winners in the recovery".

Kenya Airways achieves 'very significant savings' through renegotiated aircraft leases: CEO

Kenya Airways Group MD and CEO Allan Kilavuka stated the airline achieved "very significant savings" in 2021 through negotiations with aircraft lessors. The airline reduced fleet costs from KES28.5 billion (USD243.88 million) in 2020 to KES16.6 billion (USD142.05 million) in 2021. The carrier returned certain aircraft to lessors, including its Boeing 737-700s, and changed other leasing agreements from fixed rates to hourly rates, avoiding payment for idle aircraft. Kenya Airways leases 17 of its 36 aircraft. The airline also extended the lease of two 777-300s to Turkish Airlines.