Latest news with #travelrecovery
Reuters
6 days ago
- Business
- Reuters
Alaska Air reinstates profit forecast as travel demand improves
CHICAGO, July 23 (Reuters) - Alaska Air Group (ALK.N), opens new tab on Wednesday reinstated its full-year profit forecast, citing improvements in passenger traffic and pricing power. The Seattle-based airline, however, forecast a lower-than-expected profit for the third quarter. Like most U.S. airlines, Alaska pulled its full-year financial forecast in April as President Donald Trump's trade war created the biggest uncertainty for the industry since the COVID-19 pandemic. Alaska Chief Financial Officer Shane Tackett told Reuters reduced macroeconomic uncertainty has driven up bookings since late June. U.S. West Coast-based technology companies have started to travel more, bolstering bookings closer to the travel date. As a result, the airline's yields - a proxy for pricing power - are better than they were in the first quarter and the beginning of the second quarter, Tackett said. "Yields on new bookings are coming in quite strong," he said. Tackett said the company was "cautiously optimistic" that the recovery in travel demand would be sustained through the rest of the year. Alaska now expects its full-year 2025 adjusted profit to be greater than $3.25 a share. That compares with analysts' average estimate for a profit of $3.41 a share, according to LSEG data. In the third quarter, the company expects an adjusted profit in the range of $1.00 a share to $1.40 a share. The midpoint of the forecast is $1.20 per share, compared with analysts' average estimate of $1.65, according to LSEG data. The company said its earnings would suffer in the third quarter due to an IT outage this week that disrupted its operations. It also expects higher operating costs during the quarter as a result of its decision to cut flights in weaker demand periods to avoid discounting pressure. Alaska is the latest U.S. carrier to report improvements in demand trends. Last week, United Airlines (UAL.O), opens new tab said its bookings have picked up since the beginning of July, with a double-digit acceleration in business travel demand in the current quarter from the prior quarter. Tackett said while the demand for premium cabins has stayed strong, bookings for main cabin seats have stabilized. Echoing United and Delta Air Lines (DAL.N), opens new tab, Alaska said the industry's efforts to slash flights in off-peak travel periods in the third and fourth quarters are expected to boost margins. Tackett said Alaska expects its unit revenue, or revenue generated from each seat, to be in a range of flat to up a low-single-digit percent in the September quarter. The company's unit revenue declined in the second quarter from a year ago. Alaska is also facing higher costs for some of its aircraft due to the tariff war. Aircraft manufacturer Embraer ( opens new tab last week warned that Trump's proposed 50% tariff on imports from Brazil would result in an additional cost of around $9 million per aircraft for U.S. airlines. Alaska is scheduled to receive three jets from Embraer early next year. Tackett said the proposed tariff would challenge the economics of those planes, adding the airline could even consider deferring the aircraft deliveries. "We're not going to ultimately bring that we view are going to be potentially non-economic for us," he said. Alaska reported an adjusted profit of $1.78 a share in the second quarter compared with a profit of $1.54 a share expected by analysts. The company will discuss its financial results on a call with analysts and investors on Thursday.
Skift
09-07-2025
- Business
- Skift
Tourist Arrivals to U.S. Drop Again – Now Just 80% of 2019 Levels
The U.S. inbound tourism recovery is stalling, not strengthening. June's roughly 3% year-over-year decline masks the real story: overseas arrivals remain stuck at just 80% of 2019 levels, six years after the pandemic. U.S. government data for June shows continued weakness in the number of international visitors to the U.S. amid broader economic and geopolitical turbulence. Visits to the U.S. from overseas fell 3.4% year-over-year, according to preliminary figures released Wednesday by the National Travel and Tourism Office. Roughly half of the top 20 countries generating tourists from overseas saw year-over-year declines in visitation. The UK, the top generator (besides Canada and Mexico), saw a 1.1% decl
Arabian Business
26-06-2025
- Business
- Arabian Business
Qatar Airways CEO reveals details behind travel recovery: 151 disrupted flights, 20,000 passengers diverted mid-air, 35,000 meals for stranded passengers
Qatar Airways successfully restored its global flight operations within 18 hours after an unprecedented shutdown of Qatari airspace on June 23, following a missile attack near Al Udeid Air Base. The escalation, which temporarily halted all departures from Doha and forced over 90 inbound flights to divert mid-air, led to widespread travel disruption. In an open letter to passengers, Badr Mohammed Al Meer, Group Chief Executive Officer, has explained how the airline recovered from the disruption and co-ordinated a travel operation with tens of thousands of passengers. Qatar Airways flights resumed Al Meer said flights were redirected to Saudi Arabia, Turkey, India, Oman and the UAE, while thousands of passengers were put up in hotel rooms and more than 35,000meals were served to stranded people. See the full letter from Badr Mohammed Al Meer below. Qatar Airways travel recovery stats at a glance 151 flights disrupted globally 20,000+ passengers diverted mid-air 90+ flights en route to Doha at the time of airspace closure 25 flights diverted to Saudi Arabia 18 flights diverted to Turkey 15 flights diverted to India 13 flights diverted to Oman 5 flights diverted to the UAE 10,000+ passengers already in transit inside Hamad International Airport 35,000+ meals distributed to stranded travellers 4,600+ passengers provided with hotel accommodation 3,200 hotel rooms secured across Doha 390 flights operated on 24 June during recovery 578 scheduled flights resumed by 25 June 22,000+ passengers in Doha transit at 05:00 on 24 June 11,000+ passengers resumed travel by morning wave on 24 June All 20,000 diverted passengers rebooked and cleared within 24 hours 18 hours to resume full operations across the network To our passengers: an open letter from Qatar Airways Group Chief Executive Officer 'To all our passengers who place their trust in Qatar Airways, 'This week brought an operational crisis few airlines will ever encounter, and one that challenged the very core of what it means to run a global airline. 'At around 6pm local time on Monday, June 23, an unexpected and unprecedented closure of Qatari airspace forced Qatar Airways to suspend global operations with immediate effect. 'Shortly after, airspace was also closed in Bahrain, the UAE, and Kuwait. Hamad International Airport, one of the world's busiest and most connected global hubs, was brought to a standstill, with almost 100 aircraft en route to Doha, several already on approach to our runways, and others lining up for departure. 'In the moments that followed, a missile attack was launched from Iran on Al Udeid Air Base in Qatar. As missiles entered the skies above Qatar, air defence systems were activated and the State of Qatar's Armed Forces took swift, decisive action to protect its people, defend its territory, and ensure the safety of everyone within its borders. 'At the time, over 90 Qatar Airways flights carrying more than 20,000 passengers to Doha, were forced to divert immediately. '25 flights diverted into airports across Saudi Arabia, 18 into Turkey, 15 into India, 13 into Oman, and 5 into the United Arab Emirates. 'The remaining aircraft were re-routed to major hubs including London, Barcelona, and others across Europe, Asia, and the Middle East. 'All departures from Doha were suspended until 12.01am on June 24 at the earliest. Our routine, seamlessly synchronised global operation was, in an instant, scattered into dozens and dozens of disrupted flight scenarios across continents, each with their own complexities and requirements. 'Inside Hamad International Airport, over 10,000 passengers were already in transit, expecting to depart when the escalation occurred. They found themselves caught in the middle of one of the most severe and complex operational challenges in modern aviation history. 'Around the world, some of our flight crews had timed out of legal operating hours. Most of our fleet, including A380s carrying more than 450 passengers each, were now out of position, some grounded at airports with curfews. 'Several flights had to wait for clearance to re-enter restricted regional airspace. Aircraft routing plans were rewritten in parallel with passenger itineraries. Over 151 flights were immediately disrupted. Every part of the operation had to adapt in real time — without precedent, and without pause. 'The priority for us was clear: to care for our passengers impacted by the unprecedented situation that continued to unfold, and to restore our global operations as safely and swiftly as possible. 'Once airspace reopened shortly after midnight on Tuesday, June 24, diverted aircraft began returning to our Doha hub over the course of several hours — each arrival a step towards reassembling our operation. 'As these aircraft and their passengers disembarked at Hamad International Airport, the number of passengers in transit surged to over 22,000 by 5am local time. 'As an airline, our business continuity plans were activated, and our teams coordinated on hard resource planning, catering, ground transport, hotel accommodation, and real-time alignment with passenger movements, immigration, customs, and every airport stakeholder. 'Over 4,600 customers were provided hotel accommodation, using approximately 3,200 rooms across Doha. 'Many of these passengers received onward boarding passes for their rescheduled flights before even leaving the terminal — allowing for a smoother re-entry once our operations resumed. 'Teams from across the airline group stepped into transit areas to assist passengers directly, rebooking journeys, prioritising medical cases, supporting families and elderly travellers, and manually rebuilding complex travel itineraries, some involving other airlines, and expired visas. 'Over 35,000 meals were distributed, and water, comfort kits, and reassurance were offered face to face, flight by flight. 'We increased capacity to destinations with high volumes of displaced passengers. Contact centre resources were scaled up to cope with global demand. We quickly established a flexible travel policy, allowing passengers who had not yet started their journeys to make changes or refund their bookings without fees. 'Across our global stations, ground handlers and partners moved quickly, supported by live coordination between our airport and airline operations control centres. 'A severe geopolitical escalation had forced the shutdown of our global hub, but our focus was to stay agile, adapt, and continue to deliver for our passengers. 'By Tuesday, June 24, Qatar Airways operated a total of 390 flights as we worked to rebuild our network and restore schedule integrity. 'All passengers from diverted flights — approximately 20,000 in total — were cleared within 24 hours. More than 11,000 resumed their journeys during the morning wave on June 24, with the remainder departing through the evening wave and morning bank on June 25. 'As of today, there are no passengers from diverted flights left stranded. Within just 18 hours, our scheduled operations had resumed. Wave by wave, the system began to stabilise. By the end of Tuesday, more than 58,000 passengers had departed Doha — moved not by chance, but by a coordinated effort from across the Qatar Airways Group to fulfil our responsibility during this unprecedented disruption. Today, June 25, our operation has stabilised even further, with 578 scheduled flights operating. 'This scale and speed of recovery reflects the depth of experience, planning, and commitment we're proud to uphold at Qatar Airways. 'To everyone who travelled with us during this difficult time — to those who waited patiently in long queues, to those who faced uncertainty, and to those who showed understanding in the face of a worrying and rapidly-evolving crisis — I thank you. 'We are deeply grateful for your patience and trust as we worked to take you to your destination as safely and smoothly as possible. 'My sincere appreciation goes to our teams across the airline, and to our partners around the world, for their immense efforts around the clock over the past few days. Faced with an extraordinary challenge, we came together to support our passengers, recover our network, and return our operations to normal. 'The professionalism and unity on display reflect the very best of what our airline group and our partners stand for. 'Millions place their trust in Qatar Airways to carry them across borders, continents, and time zones, — and that trust is not taken lightly. It is earned, through action, through responsibility, and a readiness to act when it matters most. 'Thank you for continuing to place that trust in us'.
The Independent
16-05-2025
- Business
- The Independent
Holiday inbound tourism thrives
China's inbound tourism market saw strong recovery and growth during the May Day holiday, with smaller cities attracting more foreign visitors seeking cultural experiences, according to industry insiders. During the five-day break from 1 May to 5 May, inbound travel bookings surged 130 per cent from a year earlier, said Group, China's largest online travel agency. While top-tier cities such as Beijing and Shanghai remained popular, destinations including Chengdu in Sichuan province, Chongqing, Hangzhou in Zhejiang province, Zhuhai in Guangdong province, and Xi'an in Shaanxi province also made the list of top inbound choices. China has been opening its doors wider to international travellers. In 2024, the country expanded its unilateral visa-free policy to include 38 countries, allowing visits of up to 30 days, according to the National Immigration Administration. Favourable tax refund policies have also boosted inbound travel. In late April, China lowered the tax refund threshold from 500 yuan (£52.07) to 200 yuan (£20.81) and raised the cash refund limit from 10,000 yuan (£1,040.53) to 20,000 yuan (£2,081.06). There is no limit on refunds processed by bank transfer, according to a guideline issued by the Ministry of Commerce and five other departments. 'We encourage relevant institutions to provide tax refund services through various means such as mobile payments, bank cards and cash, and to better meet the diverse payment service needs of overseas travellers,' said Sheng Qiuping, vice-minister of commerce, at a recent news conference in Beijing. During the holiday, tourists from the United States, South Korea and Japan made up the largest share of inbound visitors. The number of travellers from Australia, Vietnam and Canada also rose significantly, according to Beijing-based travel platform Qunar. Foreign visitors are venturing beyond major cities. Hotel bookings by foreign tourists in Zhuhai rose 70 per cent year-on-year, while Qingdao in Shandong province and Wuhan in Hubei province saw increases of 60 per cent and 50 per cent, respectively, Qunar reported. China's picturesque landscapes and rich culinary culture have frequently been featured in South Korean TV dramas and variety shows, piquing travel interest. The May Day holiday also coincides with a public holiday in South Korea, encouraging young travellers to visit China. South Korea's leading travel agency, Hana Tour, said January trips to China rose 77 per cent year-on-year, outpacing a 20 per cent increase for trips to Japan. The surge was mainly driven by China's visa-free policy. Major South Korean airlines have responded by expanding their international flight offerings to China to meet rising demand. Meanwhile, more foreign visitors are seeking immersive cultural experiences in rural areas. A resort in Zhangjiajie, Hunan province, reported a surge in bookings from tourists from the US, Italy and Spain since April. 'Besides sightseeing, foreign tourists have shown increasing interest in in-depth tours and diverse experiences, such as participating in farming activities and attending ethnic concerts,' said Fang Zexi, a Group researcher. Their cultural curiosity extends into everyday life. In Chengdu, a popular southwestern city, more foreign visitors are booking culinary experiences, visits to local farmers' markets, cooking sessions, table presentations and food tasting, said. During the five-day holiday, China recorded more than 1.11 million cross-border trips made by foreigners, a year-on-year increase of 43.1 per cent, the National Immigration Administration said.
