Travel News
Covid-19: Heathrow warns quarantine rules may cause flight delays - BBC
People travelling to England from 33 high-risk countries may face suspended flights and long queues at the border, Heathrow Airport has said.
The airport said "good progress" had been made on a "number of issues" with the government's hotel quarantine plan, which comes into force on Monday.
But it said it was concerned about whether UK Border Force could "cope".
The government said it was working closely with airports and hotels to manage any issues that arose.
From Monday, British and Irish citizens and UK residents arriving in England from a "red list" country will have to quarantine in government-sanctioned hotels for 10 days to try to stop new coronavirus variants entering the country.
They will have to pay £1,750 for their stay, which covers the cost of the hotel, transport and testing, and book it in advance using a government portal.
Those who fail to quarantine in such hotels face fines of £5,000 to £10,000, while anyone who lies on their passenger locator form about having been in a country on the red list faces a prison sentence of up to 10 years.
The "red list" mainly consists of countries in South America and Africa, as well as Portugal.
Heathrow Airport said it had been "working hard" with the government to make sure the plan works.
However, in a statement it said "queues at the border in recent days of almost five hours are totally unacceptable".
"Ministers need to ensure there is adequate resource and effective processes at the border to avoid compromising the safety of passengers and those working at the airport, which could necessitate the suspension of some arriving flights," it added.
The airport is one of five in England where people requiring hotel quarantine can enter the UK and is expected to receive the largest number of passengers.
The other four are Gatwick, London City, Birmingham and Farnborough Airfield.
'Guinea pigs'
Regulations for the hotel quarantine measures, which come into force from 04:00 GMT on Monday, have been published.
But on Friday the Immigration Services Union said its officials had yet to receive guidance on how the system would work.
The union said officials still did not know what levels of checks they should be conducting on travellers.
It also raised concerns about the safety of security halls.
And the GMB union has warned that "rushed" government plans are not thorough enough to make sure workers on the front line in quarantine hotels are protected.
The union said security guards were one of the occupations worst hit by Covid deaths, adding that it wanted to meet employers to develop a strategy to better protect workers.
Meanwhile, a family returning to the UK after four years living in Abu Dhabi said travellers should not be used as "guinea pigs", amid confusion over hotel quarantine rules.
Beckie Morris, 30, planned to repatriate to the UK with husband Matthew and their five-week-old daughter, but they now face a quarantine bill of thousands of pounds if they do.
The new mother said there was "no information" on the government website about what to do with young children.
She said: "We'd have to arrange all the formula. I don't know what we do about sterilising bottles, or nappies or washing their clothes - there's all this unknown. I tried to reach out, and I know it's still really early days, but there's just no information.
"They haven't really laid out what actually happens when you get to that hotel and I don't think that's going to be known until the first person goes in there.
"People shouldn't be used as guinea pigs - especially not paying that amount, that is an extortionate amount of money."
A government spokeswoman said: "Every essential check - from pre-departure testing to the passenger locator form - will help prevent the importing of new coronavirus variants into the UK.
"We are working closely with airports and hotels to manage any issues that arise and ensure the new process runs as smoothly as possible, and we are clear the safety of all staff and passengers is a priority."
Kidnap capital Mexico eyes biometric phone registry, sparking privacy fears - REUTERS
By Cassandra Garrison
MEXICO CITY (Reuters) - A plan by Mexican lawmakers to put millions of cell phone users’ data in a biometric registry, billed as a tool to fight kidnapping and extortion, has sparked a backlash from telecoms companies and rights groups who warn it could lead to stolen data and higher costs.
Already approved in the lower house of Congress, the reform is in line with President Andres Lopez Obrador’s vow to counter crime using intelligence methods rather than force, but critics say it reveals the pitfalls of governments seeking to gather more citizen data for law enforcement purposes.
The bill is scheduled to be taken up in the current session in the Senate, where the ruling MORENA party and allies hold a majority.
Under the plan, America Movil, AT&T Inc and other carriers would be responsible for collecting customers’ data, including fingerprints or eye biometrics, to submit to a registry managed by Mexico’s telecoms regulator.
But a telecoms industry group that counts some major companies as members warned in an open letter that the reform could increase phone theft as criminals look to get around the registry by stealing devices and could risk customers’ safety if personal data were misused.
America Movil -- owned by Mexican billionaire Carlos Slim -- AT&T and Telefonica declined to comment.
The Mexico Internet Association, which includes Slim’s Telcel wireless company as a partner, said the registry would cost the industry hundreds of millions of dollars to implement, could put jobs at risk and create a human rights violation by compromising personal data protection.
Rights groups describe the plan as no better than a similar registry, which did not include biometric data, that Mexico dismantled in 2012 after a review found extortion calls, many of which come from inside prisons, actually increased by 40% after the data was leaked on the black market.
The new reform could lead people being exploited by bad actors and potentially wrongly convicted of crimes, according to Irene Levy, the president of Mexican telecommunications watchdog Observatel.
“El Chapo Guzman is not going to say, ‘This is my phone number and I am El Chapo Guzman,’†Levy said, referring to the Sinaloa Cartel kingpin who is in prison in the United States.
“What criminals do is ask someone to go and buy certain telephone lines, and when there is a crime committed with these numbers, this boy or girl - who took the money out of necessity and registered without knowing the consequences - will go to jail.â€
Given the government’s strong support in Congress, the bill has a good chance of being passed, said Jorge Bravo, a political science professor at Mexico’s National Autonomous University (UNAM). However, a rethink is possible if public concern grows ahead of June mid-term elections.
EXTORTION CALLS
However, Maria de los Angeles Huerta, a lawmaker with the ruling MORENA party, said the registry was needed to help fight kidnapping in Mexico, which has the highest incidence of the crime in the Americas and the third-highest globally, according to international consultancy Control Risks.
Criminals have been known to use up to 17 prepaid phones to carry out one kidnapping, making it nearly impossible for police to track them down, Huerta said.
The reform’s supporters argue there is too little control of the country’s more than 120 million mobile lines, 83% of which use pre-paid SIM cards available at corner stores.
As things now stand, you can “buy a card and put it on your phone.... make an extortion call and then throw the phone in the garbage,†said Huerta.
The registry would make it harder for mobile users to remain anonymous by requiring proof of identification alongside hard-to-fake biometric data for anyone opening a new line. That information would then be available to law enforcement upon request.
Huerta called it a necessary tool in Mexico’s fight against extortion.
“Biometric data is not so falsifiable. If you are a horrendous criminal, you can tell your mother to open (a line), but at least you’re going to find the criminal’s mother, right?†she said.
The new registry would mandate the installation of biometric equipment, either to capture fingerprints or iris scans, anywhere mobile lines are sold.
While 155 countries around the world maintain cellphone user registries, Mexico’s collection of biometric data would go further than most.
Only about 8% of countries with registries also require biometrics, mainly for prepaid SIM card users, according to global telecoms industry lobby GSMA. Mexico’s registry would collect biometric data from all cellphone users in the country including from postpaid customers who are normally seen as unlikely criminals.
Many of those countries which do retain biometric data have questionable records on human rights, including China, Saudi Arabia and Pakistan. No Western countries collect biometric data from cellphone users.
Still, Mexico could serve as a model for other countries in the region, including Chile, where SIM registration is under consideration, experts said.
The reform implies a sweeping change for telecoms companies by making them responsible for the cost of collecting the data and then submitting it to the registry.
Others say the registry will obstruct mobile access for indigenous people who may lack official forms of identification.
Peru introduced fingerprint collection in 2016 for a regulator-managed registry, but it led to complications in rural areas where mobile phone penetration was already a challenge.
If users fail to submit the data, mobile carriers will have to cut their lines, further isolating people who rely on their phones for internet access, said Elena Estavillo, a former commissioner of the IFT, Mexico’s telecoms regulator.
“We should highlight this as something very worrying because it can be a circumstance that discourages or, for some people, makes it impossible to have access to these services, which is a fundamental right,†Estavillo said.
Reporting by Cassandra Garrison; Editing by Christian Plumb and Alistair Bell
IMF says Canada must justify post-pandemic stimulus spending, needs clearer fiscal anchor - REUTERS
By Julie Gordon
OTTAWA (Reuters) - Canada must justify its planned C$100 billion ($78.86 billion)post-pandemic stimulus plan before committing to significant new spending and should commit to a clear fiscal anchor, the International Monetary Fund said on Tuesday.
The IMF, in a mission report, said Canada's response to COVID-19 was "timely, decisive, and well-coordinated." But it warned that the crisis had exposed cracks in the country's social safety net and urged clear targets for support and stimulus.
"The federal government's commitment to spend up to 4 percent of GDP over the next three years to support the recovery needs further justification," the IMF said in the report following an official visit.
"While the government still has some fiscal space, the additional spending, if deemed unjustified, could weaken the credibility of the fiscal framework," it added.
Canada's Liberal government said last year it would spend up to 3-4% of GDP to help boost growth once the pandemic is under control.
But in its report, the IMF cautioned Canada to calibrate its stimulus plans carefully, with the aim of supporting full-capacity growth and preventing permanent damage to output, before committing funds.
It also noted that while the introduction of "fiscal guard-rails" were a welcome step, more clarity was necessary, and said a clear debt anchor is needed to ensure "that credibility in the fiscal framework is maintained over the medium term."
Prior to the pandemic, the Liberal government anchored its spending by targeting an annual decrease in its debt-to-GDP ratio.
"We have a plan to provide meaningful investment to build our way out of the coronavirus recession, so our economy comes roaring back stronger than before," Finance Minister Chrystia Freeland said in a statement reacting to the report.
The government plans to give details on its stimulus plan with its budget, expected in March or April.
($1 = 1.2680 Canadian dollars)
(Reporting by Julie Gordon in Ottawa; Editing by Dan Grebler)
Azman Air aircraft landing incident forces closure of Lagos airport runway - VANGUARD
By Lawani Mikairu
Azman Air Boeing 737 aircraft with registration 5N SYS, and flight number ZQ2325 Tuesday evening had a tyre burst after landing on runway 18 R of Muritala Muhammed Airport, Lagos.
Though no life was lost in the incident, but the mishap has forced Federal Airports Authority of Nigeria, FAAN, to close the runway for flight operations.
Confirming the closure of the runway yesterday night, Mrs Herrietta Yakubu, General Manager, Corporate Affairs, FAAN, said: †Federal Airports Authority of Nigeria hereby announces a temporary closure of Runway 18R/36L at the Murtala Mohammed Airport, Lagos.â€
“The closure is due to a landing incident involving a Boeing 737 Azman Air aircraft with registration 5N SYS, and flight number ZQ2325. The aircraft had a tyre burst after landing on this runway.â€
“All passengers and crew on board the aircraft were safely evacuated at 1908 hours, and officials of FAAN Air Rescue and Fire Fighting Services, AIB and NAHCO are already working to ensure the aircraft is towed out of the runway, so as to restore normalcy, †she said.
Read more at: https://www.vanguardngr.com/20...
‘Bearers of fake PCR test results to be quarantined, jailed’ - THE NATION
By Bolaji Ogundele, Abuja
The Presidential Task Force (PTF) on COVID-19 Pandemic has warned inbound international travellers to be wary of obtaining fake PCR test results as such will attract strict sanctions, including imprisonment.
National Incident Manager of the PTF Dr. Mukhtar Muhammad, who gave the warning during the task force’s media briefing in Abuja on Monday revealed that the PTF had discovered that syndicates are now issuing fake PCR results to travellers in some foreign countries.
He, however, advised Nigerians travelling back into the country to ensure to take real tests, obtain original results as the penalty for presenting a fake result would see defaulters being quarantined on arrival and made to bear the full cost, after which they are likely to be prosecuted, fined or jailed.
We intend to apply the full force of the law over such violators, which include fines and imprisonment. Our aim is not to witch-hunt or punish anyone, but just to ensure people travel safely and when they return to the country that they do not constitute danger to their loved ones and their community.
“The PTF is aware of the report of syndicates at some international airports outside Nigeria, who specialise in providing fake results to innocent Nigerians, who are travelling back home.
“While investigating the matter and working on its relevant authorities, including the countries in which these syndicates operate to make sure that these guys are nipped in the bud, I will like to reiterate that it is the responsibility of any passenger returning to Nigeria, to ensure that they are tested before they start returning. You cannot be given a negative result when your samples have not be taken; please understand this and comply.
“It is important to note that on arrival here, if you have a fake result, you will be quarantined in any of our facilities and you will bear the expenses of the facility, feeding and the lab test and after that, you are also liable to prosecution.
“Still on travel protocol, we received reports of technical challenges experienced by people returning to the country. We have set up a backup manual process and communicated same to all relevant stakeholders, including the airlines, Ministry of Health and other embassies.â€
Quarantined travellers have to pay extra £1,200 if they test positive for Covid-19 - EVENING STANDARD
by Barney Davis
Travellers shipped to airport quarantine hotels will be landed with an extra £1,200 bill if they test positive for coronavirus, the Government has revealed.
This is on top of the £1,750 fee for entering the programme and will apply to guests required to extend their stay beyond the initial 11 nights.
Information about the £152 daily cost of longer stays was only published on the Government’s website on Monday, after some guests had already checked in.
From 4am on Monday, travellers arriving in England must quarantine in a hotel if they have been in a country at high risk of coronavirus variants in the previous 10 days.
Guests are allowed to leave after 11 nights if they receive negative results from tests taken on day two and day eight of their isolation.
A positive result from the first test will extend a traveller’s stay by two nights at a cost of £304.
If the second test returns a positive reading, the guest must remain in their room for an additional eight nights and pay £1,216.
Prime Minister Boris Johnson was asked at Monday’s Downing Street press conference what will happen if a traveller cannot afford the extra fee.
He replied: “It is currently illegal to travel abroad for holidays anyway.
“We would expect people who are coming in from one of these red list countries to be able to cover their costs.â€
There are 33 countries on the Government’s “red listâ€, which includes Portugal, the United Arab Emirates, South America and southern Africa.
UK and Irish nationals and UK residents returning to England who have been in a country on the list in the previous 10 days must enter a quarantine hotel, even if they have travelled via the CTA.
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On Monday the first flight arrived at 6.20am but travellers found to be on the red list only emerged through immigration nearly two hours later.
Passengers reported big queues in the immigration hall with Border Force staff trying to establish who was on the red list.
Scotland’s exemption for people travelling from the CTA led to a father and daughter who entered the programme on Monday being allowed to leave after just one day and complete their isolation at home.
Chun Wong told BBC Scotland he and his daughter flew into the country from the United States via Dublin, and went straight to a hotel at Edinburgh Airport.
Mr Wong told the broadcaster: “I received a call from reception saying a gentleman from the airport would like to talk to me.
“He said that since I landed in Dublin first and then got a connecting flight to here, I was not required to quarantine in a hotel.
“I still have to quarantine and do the self-testing kit on the second and eighth day, but they said it was an error on their part.â€
Additional reporting by PA
Sri Lanka is now open to travelers - no quarantine, but no mingling with locals too - CNBC
BY Monica Buchanan Pitrelli
To quarantine or not to quarantine — that is the question.
Or at least it has been for countries deliberating how to handle incoming international travelers.
But that changed last month when Sri Lanka reopened its borders with a requirement unlike any country that had opened before it — one that neither grants travelers free rein of the island nor boxes them into a hotel room for two weeks.
Sri Lanka Tourism Chairperson Kimarli Fernando referred to it as a “new concept†developed by the tourism authority — which allows tourists to travel the country in “bio bubbles,†or roving semi-isolated groups that let travelers sightsee without mixing with the local population.
The rules apply for the first two weeks of their stay.
Rules of the ‘bio bubble’
When Sri Lanka reopened its borders on Jan. 21, it became one of very few Asian countries — including the Maldives — to allow international travelers to enter without being subject to strict quarantines.
But tourists aren’t exactly free to go where they choose. Sri Lanka’s “bio bubbles†allow holidaymakers to move around the island provided they:
· Stay in approved hotels · Visit approved sites at specific times · Travel via independent transportation · Undergo frequent Covid-19 testing, and · Refrain from intermingling with the local population
These rules must be followed for the first two weeks upon entering Sri Lanka. Thereafter, guests are free to “interact with the local community†and move “to an accommodation of their choice,†according to a safety booklet produced by the country’s Ministry of Tourism.
The plan was first tested in a pilot project with Ukrainian tourists in late December of 2020.
Where travelers can stay
As of Feb. 17, there are 98 certified “Level 1†hotels where travelers can stay during the first two weeks of a trip. The list includes hotels and villas in tourist hotspots such as Bentota, Galle, Kandy and Sri Lanka’s capital city of Colombo.
The hotels cover a range of budgets, from guest houses in the surfing paradise of Hikkaduwa, to tented lodges near Yala National Park and the ultra-luxurious Ani Villas in Dickwella.
Sri Lanka is famous for its untouched and often empty beaches.
dowell | Moment | Getty Images
The country’s two Aman hotels — Amangalla and Amanwella — are on the list, as are several of the restored British bungalows that comprise the Ceylon Tea Trails in the beautiful tea estate region.
Unlike strict quarantines, travelers are not confined to their hotel rooms during the first two weeks of a trip. Guests are “permitted to use all facilities in the hotel including the beach,†Fernando told CNBC Global Traveler.
Hotels are to operate at 75% of capacity, leaving the remaining rooms open to isolate any guests who test positive for Covid-19. This option is only available to those without symptoms; infected travelers who display Covid-19 symptoms must isolate in a private hospital.
An Asian elephant walks along a dirt road at Yala National Park.
SolStock | E+ | Getty Images
“All certified hotels have a medical doctor,†said Fernando. These doctors are to monitor hotel staff and guests for Covid-19 symptoms and send daily reports to government authorities, according to Sri Lanka’s safety booklet.
Hotel staff who are in direct contact with guests are not allowed to leave the hotel during a guests’ stay and for 14 days thereafter. And, unless they are outfitted in full personal protective equipment (PPE), Sri Lankans who come into contact with tourists — such as tour guides and drivers — must quarantine for 14 days after a tour ends.
Where travelers can — and can’t — go
During the first two weeks of a trip, travelers are permitted to move between hotels and visit approved tourist sites, provided they visit during specific timeslots that have been allocated to tourists. When out, they are to refrain from interacting with local residents as well as other travelers.
Tourists must arrange transportation through their hotels or via a certified tour guide.
The list of sites where travelers are permitted to go include some of the most famous attractions in Sri Lanka, including Sigiriya Fortress and the ancient cities of Anuradhapura and Polonnaruwa. Yala National Park and the whale watching tours near the town of Mirissa are also on the list.
An ancient palace once stood on the top of the 660-foot Sigiriya rock, a UNESCO World Heritage site that is on the list of approved tourist sites.
Anton Petrus | Moment | Getty Images
Dambulla Cave Temple and the 16th century Galle Fort, both UNESCO World Heritage sites, are not currently open to tourists, however.
Advance planning is required for all outside trips, including stops for meals and bathroom breaks.
Frequent Covid testing
Travelers into Sri Lanka must undergo at least two Covid tests, and possibly more, depending on the length of their stay.
Covid tests are first required within 96 hours of departure, and again upon landing in Sri Lanka. Those staying longer than five days must take a third test, and anyone staying more than two weeks must take a fourth test.
The Nine Arches Bridge is located in the elevated Central Highlands of Sri Lanka.
Michael Roberts | Moment | Getty Images
Children under 12 years old are exempt from testing, unless they become symptomatic or are a close contact of an infected traveler.
Travelers must also apply for a visa prior to departure. Before doing so, tourists must make hotel bookings, purchase a Covid-19 insurance policy ($12) and prepay for Covid-19 tests ($40 each).
Currently, visas are not being issued to people who have been in the United Kingdom two weeks before entering Sri Lanka.
Are ‘bio bubbles’ attracting tourists?
On Feb.15, Fernando from Sri Lanka Tourism told CNBC that 3,820 people had arrived since the country reopened on Jan. 21.
“In comparison to the first two to three weeks of arrivals to Maldives in July 2020, our arrivals are slightly higher,†she said.
Women pick tea near the town of Nuwara Eliya in central Sri Lanka.
Tuul & Bruno Morandi | The Image Bank | Getty Images
Fernando said the travelers have come from Germany, Russia, Ukraine and expatriates living in “GCC countries,†referencing the Gulf Cooperation Council member countries of Bahrain, Oman, Qatar, Saudi Arabia, Kuwait and the United Arab Emirates.
She added that Sri Lanka is awaiting a “bubble agreement†to start flights with India, too.
Covid-19 rates in Sri Lanka
Sri Lanka had low Covid-19 infection rates until October last year. Since then, cases have steadily risen, with the number of infections peaking earlier this month.
The country of 21.5 million people has confirmed more than 77,000 cases to date, according to data compiled by Johns Hopkins University. Nearly 11,500 cases occurred in the past two weeks.
Sri Lanka started a vaccination campaign in late January. Fernando told CNBC that health officials will start vaccinating all employees in the tourism industry “within the next few weeks.â€
‘Digitalise Hajj to save pilgrims from COVID-19’ - THE NATION
By Nduka Chiejina, Abuja
The Federal Government has urged the National Hajj Commission to digitise its processes to save pilgrims from the dreaded COVID-19 pandemic.
Minister of Finance, Budget and National Planning Mrs. Zainab Ahmed advised members of the commission to quickly adopt digitisation process “because of the present reality of COVID-19 pandemicâ€.
She, therefore, appealed to the commission to license more banks to help ease the digitisation process.
Mrs. Ahmed stated these when Chairman National Hajj Commission Alhaji Zikrullah Kunle Hassan and his team visited her to present the commission’s Hajji Saving Scheme to her.
On the saving scheme, the finance minister encouraged the commission to double its efforts in sensitising Muslims on the need to take advantage of the scheme.
Ahmed expressed delight at the way the commission reaches out to and consults with stakeholders. She noted that the action would open up space and contribute to the smooth-running of the commission.
She acknowledged the fact that the commission needs support, but must put its requests in writing and be specific.
“We cannot offer government’s support now, but our multilateral institutions can offer technical support. So, reach out to them and let us know and we will help you reach out too,†Mrs. Ahmed said.
She promised to liaise with bilateral partners for technical support for the commission, hailing the effort of the commission to revive dead assets.
Hassan said the commission is “imbibing digitisation to minimise face-to-face interaction and to create more transparency in our processesâ€.
Hassan stated that “due to dwindling resources, we at the Hajj Commission frown at government sponsorship of Hajj for individuals from government’s purseâ€.
“Nigeria is the fifth-largest contingent to Saudi Arabia for Hajj after India, Pakistan, Bangladesh and Malaysia. Nigeria has an allocation of over 95,000 and that number has been consistent over the years. But, the capacity to attend has reduced considerably.â€
“We, therefore, introduced a Hajji Saving Scheme, and all stakeholders have adopted it. Prospective candidates can now save bit-by-bit to allow them to go to Hajj at their own convenient time, without stressing anyone. They can save for as long as they can, and it must not be that they go immediately, but when they are able to save enough,†he said.
Australia announces new High Commissioner to Nigeria - MIRAGE NEWS
Department of Foreign Affairs and Trade
Today I announce the appointment of Mr John Donnelly as Australia’s next High Commissioner to Nigeria. Mr Donnelly will also be accredited to Benin, Cameroon, Gabon, Niger and the Gambia.
Australia values the leadership role Nigeria and its people play in international affairs, including in Africa. Our shared membership of the Commonwealth and United Nations support human rights, democracy and development around the world. Australia supports Nigeria’s efforts to counter terrorism and combat violent extremism.
Nigeria is a significant trading partner for Australia in Africa, with two-way trade totalling $800 million in 2018-19. We look forward to further expansion of our economic relationship as we recover from COVID-19. Australia’s economic engagement with Benin, Cameroon, Gabon, Niger and The Gambia is also increasing, particularly in the mining and oil and gas sectors.
Mr Donnelly is a career officer with the Department of Foreign Affairs and Trade, most recently serving in the Multilateral Economic Branch. He has previously served overseas as Head of Mission in Nauru, and in Amman and Jakarta.
Mr Donnelly holds a Master of Public Administration from the Australian National University, a Bachelor of Arts (Honours) from the University of Sydney and is a Graduate of the Australian Institute of Company Directors.
I thank outgoing High Commissioner Claire Ireland for advancing Australia’s interests in Nigeria since 2019.
/Public Release. This material comes from the originating organization and may be of a point-in-time nature, edited for clarity, style and length. View in full here.
Air France-KLM sees bigger losses before recovery - REUTERS
PARIS (Reuters) - Renewed COVID-19 lockdowns are pushing Air France-KLM deeper into the red, the airline group warned on Thursday, as it chalked up a 7.1 billion euro ($8.5 billion) net loss for 2020 and postponed a key mid-term profitability goal.
The airline group expects to fly 40% of its pre-crisis capacity in January-March, as tougher travel curbs in France and beyond widen losses from the 407 million euros in negative earnings before interest, taxes, depreciation and amortization (EBITDA) recorded in the fourth quarter.
The past year has “tested the Air France-KLM Group with the most severe crisis ever experienced by the air transport industry,†Chief Executive Ben Smith said.
The worsening travel outlook threatens to ruin Europe’s critical summer season and leave major carriers in need of another round of funding support, analysts warn.
Air France-KLM last year received 10.4 billion euros in loans and guarantees from France and the Netherlands and is negotiating the terms of a state-backed recapitalisation, with EU regulators pushing for airport slot concessions.
The Air France business recorded a 989 million-euro operating loss last quarter, more than six times wider than KLM’s 152 million-euro deficit. Performance disparities have in the past sharpened Franco-Dutch tensions between the airlines and their government shareholders.
The cargo business, a bright spot for many airlines as grounded flights push up freight prices, saw unit revenues more than double in the fourth quarter.
The quarterly net loss of 1 billion euros was less than the 1.31 billion deficit analysts expected, according to the company’s own consensus polling. Revenue fell 64.3% to 2.36 billion euros on a 78% traffic decline.
Operating cash flow was a negative 2.12 billion euros last quarter, and net debt increased by 4.9 billion over the year to 11.05 billion as of Dec. 31, against 9.8 billion in liquidity.
Air France-KLM cut its workforce by 10% or 8,700 full time-equivalent positions in 2020 and expects to eliminate a further 6,000 “in coming years,†it said.
The group also flagged a likely further postponement of the 7-8% operating-margin objective it had pushed back last July by a year to 2025. The goal is “unchanged but delayed,†it said on Thursday, giving no new target date.
($1 = 0.8309 euros)
Reporting by Laurence Frost; Editing by Richard Chang
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