The coronavirus pandemic has hit the world hard, particularly the travel sector. Flights are grounded, cruise ships are devoid of passengers and gasoline prices are plunging because few people are commuting to work or taking road trips.
In short, global travel is close to a standstill.
Leading American aircraft manufacturer company Boeing said this week that it’s gone another month without a single airplane order.
Delta, one of the prominent American airlines, is retiring its huge 777 aircraft with little evidence that international travel will pick up soon.
Delta is burning through cash and looking for ways to cut costs. On Thursday, the carrier said it would no longer fly the 777 and other older, less efficient aircraft. It will now shoft focus to the more efficient A330 and A350-900 wide-body planes made by Airbus when international travel picks up.
Singapore Airlines reported the first full-year loss in its history and blamed it on plunging demand for air travel and fuel-hedging losses due to collapsing energy prices. The airline said recovery of international flying depends on governments easing travel restrictions, and it can’t predict when that will happen. Singapore has already cut its service 96 per cent.
For the first time in 20 years, the American Automobile Association (AAA) will not publish a travel forecast for the Memorial Day weekend. The AAA is a federation of motor clubs throughout North America.
The association said that chaos from the pandemic will make it impossible to issue reliable figures.
Norwegian Cruise Lines, one of the three major cruise lines in the world, posted quarterly results on Thursday which shpwed its losses were far greater than expected. The company, however, said that it has raised enough cash to withstand the suspension of cruises for more than 18 months.
Demand for cruises, Norwegian said, is picking up for the final three months of this year and bookings for next year are “within historical ranges”.