• NEWS
    • SUBSCRIBE TO TD
    • ADVERTISE WITH US
  • EVENTS
    • THIRSTY THURSDAY
      • RSVP PORTAL
    • VIDEOS
    • PHOTOS
    • COMPETITIONS
    • TRAINING
    • CONFERENCES
  • JOBS
    • SEARCH FOR JOBS
    • POST A JOB
  • EVERYTHING TD
    • About TD (Travel Daily Media)
    • Advertise with TD
    • What is Native Content?
    • Executive team
      • Gary (Founder/CEO)
      • Chris (GM & Managing Editor)
      • Mali (Finance Mgr)
    • Content team
      • Kristin (Senior Editor)
      • Kanchan (Editor)
    • Sales team
      • Anthony (Regional Director-APAC)
      • Paul A (BDM-Asia)
      • Martin (BDM-Asia)
      • Paul M (BDM-Bangkok)
    • Events team
      • June (Director)
      • Arlene (Snr Events Mgr)
      • Krystal (Attendee Relations)
      • Zy (Snr Sales Mgr)
      • Mary (Snr Sales Mgr)
      • Arjay (Snr Sales Exec)
  • SELF SERVICE
    • 2023 TD Media Kit
    • Submit Press Release
    • Self Service portal
    • Upload your Travel Blog

Travel Daily Travel Daily - Informing, connecting and developing the world’s travel industry professionals.

  • MARKETS/SECTORS
  • FEATURES
    • Partner Articles
      • Airlines / Airports
      • Car Rental
      • Conferences
      • Cruising (Ocean)
      • Cruising (River)
      • Destination Management (DMC)
      • GDS / CRS
      • Hotels & Resorts
      • Hotel Management Company
      • Hotel Technology
      • HR / Appointments
      • Insurance
      • Meetings, Incentives, Conferencing, Exhibitions (MICE)
      • Travel Agents (all)
      • Travel Technology
      • Tourism Boards
    • Interviews
    • Industry appointments
    • Podcasts – Features
    • Guest Writers
    • E-Turbo News
    • PR Newswire
  • TRAVEL GUIDES
    • Destination NaJomtien BanAmphur BangSaray *NEW*
    • จุดหมายปลายทาง นาจอมเทียน หาดบ้านอำเภอ บางเสร่ *NEW*
    • South Australia Rewards Wonders *NEW*
    • Ponant Yacht Cruises and Expeditions
    • Encore Tickets (Chinese Guide)
    • Affordable Luxury in Thailand by Centara Hotels
    • Rising Above the Oridinary by Conrad Bangkok
    • The Best of Thailand
  • IWTA SERIES
    • Who is IWTA
    • Meet our featured leaders
    • Refer Someone
    • Refer yourself
  • IWTA AWARDS
    • Awards site
    • Nominate
    • Buy tickets
    • Sponsor
Travel Daily
AirEturbo NewsGlobal

As transatlantic flights resume, airlines look for profit

By Joe Cusmano On Nov 12, 2021
TD Syndicated Partner
Share

After years of disappointment, long-haul airlines have finally found a reason to celebrate with the reopening US border to leisure travellers from most of Europe and the resulting increase of transatlantic flight schedules.

Non-essential foreign guests, such as tourists, family members, and friends, were the first to fly Monday. For British Airways owner IAG, not to mention rival Virgin Atlantic and other carriers, it will feel like Christmas, Thanksgiving and all their birthdays rolled into one.

In the aftermath of the reopening, IAG expected a narrower loss – €3bn (A$4.7bn)) this year, down from €4.3bn (A$7.3bn) in 2020 – and a likely return to profit by Easter. Transatlantic travel is the foundational business for long-haul airlines, and location and shared language has traditionally put UK carriers in pole position in the European market. The bulk of IAG’s profits before the pandemic came from BA, and the fat end of BA’s earnings came from America.

Because of competition from low-cost carriers on short-haul routes, British Airways has been forced to lose its dominance. Apart from those who have a connecting flight, live next to Heathrow, or prefer well-dressed stewards and complimentary biscuits, there is little need to pay for the national carrier’s tickets to Europe.

The US, though, is different. Norwegian, which tried to take a share of this market, has retreated, while the full-service airlines have all forged partnerships, joint ventures, and alliances — Virgin, in particular, choosing for the strong arms of Atlanta-based Delta. Next week, both British carriers predict full planes as passengers benefit from easier, cheaper testing standards. BA says Zoom-weary travellers are booking too.

It’s almost enough to make investors forget the billions in losses and an uncertain future: After a brief sell-off following the release of IAG’s third-quarter earnings and full-year projection, the stock rose on Friday.

The business was fascinated with high oil prices a decade ago, and they are rising dramatically again.

Analysts don’t see the rewards arriving nearly so quickly. There is still danger ahead: the sector was concerned with oil prices a decade ago as the dollars-per-barrel rose, and they are rising fast again. The cost of the considerable financing that pushed carriers through the past 18 months also appears certain to grow. As for whether the trend of opening borders and relaxing travel restrictions is one-way, it remains to be seen, especially considering how more conservative governments see the UK’s laissez-faire policies and relatively high case rates.

In any case, the holiday season is upon us, and BA and Virgin have emerged from the shadows to team up against Heathrow, their shared foe. The routine spectacle of circling the regulator every few years and throwing overegged demands for increases or reduction to the airport’s landing taxes has taken on a particular sharpness this time around.

Not only does the pandemic mean that all the parties genuinely have no money, but Heathrow has gone the whole Ebenezer by proposing to double what it charges. Playing the hapless sad sack, the Civil Aviation Authority has said that “only” a 56 per cent increase in average prices – around £35 (A$64) per passenger – would be permitted.

The wrangling continues. IAG boss Luis Gallego said on Friday that he would consider shifting IAG investment abroad if charges meant the airline could make no fair return on capital in the UK. But in another breath, Gallego revealed that BA had only earned a profit at cheap old second-choice Gatwick once in a decade. Virgin has handed over their slots at the West Sussex alternative. IAG is continuing with plans to launch a cunningly disguised BA subsidiary for the short-haul, allowing it to minimise costs and stave against expansion by rivals.

For the big dollars, though, there is just one game in town. One in four flights between Europe and the US runs via Heathrow – albeit 40 per cent fewer currently than two years ago. After an 18-month course on survival rations, both IAG and Virgin will be seeking to fill their boots on packed planes flying over the pond from Heathrow.

Share
You might also like
Events

Thailand Travel Mart (TTM+) 2023 highlights Thailand’s commitment towards sustainable…

OTAs & Tour Operators

Agoda and Bangkok Metropolitan Administration collaborate on ‘Agoda Tech Day Camp’…

Hospitality

Wyndham announces Thailand expansion with Fulcrum Ventures Asia

Features

Soft Travel: The newest TikTok trend that’s here to stay

Prev Next

Comments are closed.

POPULAR STORIES

Thailand Travel Mart (TTM+) 2023 highlights Thailand’s…

Agoda and Bangkok Metropolitan Administration collaborate on…

Wyndham announces Thailand expansion with Fulcrum Ventures…

Soft Travel: The newest TikTok trend that’s here to stay

Prev Next 1 of 5,869

PARTNER CONTENT

  • The Pavilions Phuket: A 5-star personal experience in a tranquil and romantic location

    Read More...
  • Unleash your inner explorer: Aurora Expeditions’ Antarctica 2024-2025 Season offers 25 adventure-packed itineraries

    Read More...
  • How short-term rental platforms in Asia can protect their hosts and customers

    Read More...
  • Exploring Europe seamlessly with Rail Europe’s point-to-point journeys

    Read More...
  • The Role of a Revenue Manager in Uncertain Economic Times

    Read More...
  • The ultimate guide to the 5 best resorts in the Maldives

    Read More...
STAY UPDATED WITH THE LATEST TRAVEL NEWS, JOBS & EVENTS!
Join over 180,000 travel agents, professionals and executives subscribed to our daily newsletter.
You can unsubscribe at any time
Search
MENU
  • News
  • Events
  • Jobs
  • Subscribe

MARKETS

  • Asia
  • Australia
  • New Zealand
  • India
  • Middle East
  • UK & Europe
  • USA

SECTOR

  • Airlines
  • Airports
  • Cruise
  • Hospitality
  • HR & Careers
  • Luxury Travel
  • MICE (Meetings, Incentives, Conferencing, Exhibitions)
  • Travel Tech
  • Tourism
  • Travel Agents
About
  • BOOK A SALES CALL
  • About TD (Travel Daily Media)
  • Advertise with Us
  • Privacy Policy
  • Terms of Use
© 2023 - Travel Daily. All Rights Reserved.
Subscribe to our newsletter
Sign up here to get the latest news, updates and special offers delivered directly to your inbox.
You can unsubscribe at any time
Close

Welcome, Login to your account.

Forget password?

Sign in with Google

Powered by wp-glogin.com

No account? Sign Up
Sign in

Recover your password.

A password will be e-mailed to you.

CREATE A NEW PROFILE
SIGN IN TO EXISTING PROFILE
back

LOG IN

Welcome back, Log in to your account.

Continue with Facebook
Continue with Google
Continue with Twitter
Continue with LinkedIn

OR
Log in using your email
Forgot password?
back

Recover your password.

back

SIGN UP FOR FREE

(New User)

Be part of our community of seasoned travel and hospitality industry professionals from all over the world.

I want to
Only letters and numbers are allowed
Please enter a valid email address
Must be between 6-8 characters
Must be the same with Password
  • LOGIN / SIGN UP
  • NEWS
    • MARKETS
      • Asia
      • China
      • Pacific
      • India
      • Middle East
      • UK & Europe
      • USA & Canada
    • SECTORS
      • Airlines
      • Airports
      • Cruise
      • Hospitality
      • HR & Careers
      • Luxury Travel
      • MICE (Meetings, Incentives, Conferencing, Exhibitions)
      • Travel Tech
      • Tourism
      • Travel Agents
    • FEATURES
      • Partner articles
        • Airlines / Airports
        • Car Rental
        • Conferences
        • Cruising (Ocean)
        • Cruising (River)
        • Destination Management (DMC)
        • GDS / CRS
        • Hotels & Resorts
        • Hotel Management Company
        • Hotel Technology
        • HR / Appointments
        • Insurance
        • Meetings, Incentives, Conferencing, Exhibitions (MICE)
        • Travel Agents (all)
        • Travel Technology
        • Tourism Boards
      • Interviews
      • Industry appointments
      • Travel Bloggers
      • Podcasts – Features
      • Mergers & Acquisition
        • Buyers/Investors wanted
        • Business for sale
        • News
  • EVENTS
    • Thirsty Thursday
      • RSVP Portal
    • Photos
    • Videos
    • Webinars
    • Competitions
    • Conferences
  • JOBS
    • Search for Jobs
    • Post a Job
  • TRAVEL GUIDES
    • Destination NaJomtien BanAmphur BangSaray *NEW*
    • จุดหมายปลายทาง นาจอมเทียน หาดบ้านอำเภอ บางเสร่ *NEW*
    • South Australia Reward Wonders *NEW*
    • Ponant Yacht Cruises and Expeditions
    • Encore Tickets (Chinese Guide)
    • Affordable Luxury in Thailand by Centara Hotels
    • Rising Above the Oridinary by Conrad Bangkok
    • The Best of Thailand
  • IWTA SERIES
    • Who is IWTA
    • Meet our featured leaders
    • Refer Someone
    • Refer yourself
  • IWTA AWARDS
    • Awards site
    • Nominate
    • Buy Tickets
    • Sponsor