By Ilaria Grasso Macola
Increasing fuel prices will continue to put pressure on airlines’ costs for the rest of the year, according to aviation boss Willie Walsh.
“I am aware of some airlines that have embarked on hedging in recent months … just to provide themselves with some protection against the volatility that we’re witnessing,” said Walsh – a former chief executive of BA’s owner IAG and now at the helm of the International Air Transport Association (IATA).
However, the aviation industry’s recovery from the pandemic was gaining momentum, with global passenger numbers at 75 per cent of 2019 levels.
International traffic, Willie Walsh said, was at 67.9 of pre-pandemic levels, lagging behind domestic traffic’s 86.9 per cent.
According to the chief executive, demand was bolstered by surging passenger numbers in the west as well as an increase in domestic traffic in China.
The surge in passenger demand combined with staff shortages was the reason behind the travel chaos, which hit Europe and the UK this summer.
To guarantee a smoother run of services, major hubs – including Heathrow, Gatwick and Amsterdam’s Schiphol – put a cap on the number of either departing passengers or daily flights, forcing airlines to cut hundreds of services.
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