Get 40% Off
👀 👁 🧿 All eyes on Biogen, up +4,56% after posting earnings. Our AI picked it in March 2024.
Which stocks will surge next?
Unlock AI-picked Stocks

IATA boss blames risk-averse governments for prolonging travel crisis

Published 05/28/2021, 07:47 AM
Updated 05/28/2021, 10:11 AM
© Reuters. FILE PHOTO: An airplane prepares to land at Cointrin airport in Geneva, Switzerland, December 5, 2017. REUTERS/Pierre Albouy

PARIS/LONDON (Reuters) -The head of global airline industry body IATA blames overly risk-averse governments for prolonging the COVID-19 crisis for the travel sector but expects the outlook to brighten in the second half of the year.

IATA Director General Willie Walsh, the former boss of British Airways owner IAG (LON:ICAG), expects positive data on vaccine effectiveness to convince governments to start rolling back restrictions.

"There is some good evidence there to be optimistic that, going into the second half of this year, we will see a better environment that will allow more people to travel," he told Reuters on Friday.

Most international air travel remains depressed almost 18 months into the pandemic because of continuing restrictions.

Walsh, who took the top job at IATA in April, said that governments were being too risk-averse and needed to change rules to reflect data showing that vaccinated travel or travel with testing poses little risk to a country's infection rate.

"The crisis in the airline industry, which was initially caused by a health pandemic, is now really a crisis caused by restrictions being imposed by government," Walsh said.

He singled out Britain in particular, citing rules that require people entering the UK from nearly all countries to take at least two coronavirus tests and enter quarantine. Walsh also hit out at what he said was "incredible farcical confusion" created by mixed political messages on travel.

Many countries on Britain's "amber list" for medium-risk travel have very, very low transmission rates, said Walsh.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

"If I was vaccinated, I wouldn't hesitate to fly to these countries," he said of places such as the United States, Spain, France and Italy, which were top destinations for Britons before the pandemic.

Britain said its cautious approach to the return of international travel was designed to prioritise public health.

"Country classification ... is guided by the evidence and analysis of a range of key factors, including rates of infection, the prevalence of variants of concern, and the country’s access to reliable scientific data and genomic sequencing," a Department for Transport spokesman said.

Britain and the United States both have high vaccination levels, which Walsh said gave him confidence that a travel corridor could be opened between the countries in June.

"I think there's a good reason to be optimistic that we should be able to see the UK and U.S. open transatlantic flying again," he said.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.