PARIS/LONDON: (HRNW) For a year expected to mark a turning point for pandemic-stricken European airlines, 2021 is off to a rough start.
A resurgence of COVID-19 lockdowns has killed off a fragile bookings upturn, executives and analysts said, as insolvent Norwegian Air finally axed its long-haul operations on Thursday.
The setbacks deal a blow to airline hopes that the promise of vaccines would put the worst of the crisis behind them, and set the stage for a summer rebound.
New outbreaks and travel restrictions – some designed to curb the spread of a highly infectious virus variant detected in Britain – have hit forward bookings that are usually relied upon to bring in vital cash during the thin winter months.
Global airline industry body IATA believes a return to positive cash flow “might not arrive before the end of the year,” Chief Economist Brian Pearce said.
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