Global airlines hit by Covid-19 are confident of reducing their losses, but face challenges such as labor shortages at airports, which could constrain post-crisis growth, industry executives said.
At a summit in Doha, Qatar Airways chief Akbar Al Baker said the shortage of manpower will be a challenge in the coming months, although there are many job requests.
“People have gotten into the bad habit of working from home,” said Al Baker. “They feel like they don’t have to go into an industry that needs people who really work.”
JetBlue President Robin Hayes said the industry will have “a new normal” in the next two to three years.
“The cost of government mismanagement was substantial. It devastated economies, disrupted supply chains and destroyed jobs,” Willie Walsh, director general of the International Air Transport Association (IATA), said at the annual industry meeting of more than 100 airline heads.
Airlines have also been criticized by governments and consumer groups for disruptions as demand for travel has picked up more quickly than expected as the industry sees uncoordinated government responses to the crisis.
Walsh cited research showing that closing borders had barely stopped the spread of the pandemic, and all but halted international travel and crippled economies.
Governments around the world have lent more than $200 billion in support to airlines to contain bankruptcies during the pandemic, according to British aviation consultancy Ishka.
Airlines could profit next year as air travel picks up, IATA said. Walsh said he was not concerned about the current demand and supply environment.
But the chief executive of Korean Air Lines warned that rising interest rates and inflation could affect consumer demand and that increased competition could drive down ticket prices.
And United Airlines Chief Executive Scott Kirby predicted that fuel prices are likely to remain high for the long term.
Walsh, who has a reputation for standing up to unions and governments as the former head of British Airways, has rallied chief executives with an attack on the practice of raising airport fees to recoup lost revenue during the crisis.
Airports said they were unfairly criticized by airlines and urged them to focus on solving their own problems.
Source: CNN Brasil
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