KUALA LUMPUR: Local airlines and regional operators are divided about the aviation sector’s recovery prospects, owing to continued uncertainty about travel restrictions and the evolution of Covid-19 variants, which could reduce demand for air passengers.
Malaysia Airlines Bhd (MAB) said the outlook for 2022 and 2023 for the aviation industry remains uncertain, with the different waves of infections continuing to spread to over 57 countries.
“This could further halt the recovery efforts of the sector that has tirelessly weathered the effects of the pandemic to stay afloat should travel restrictions continue to be imposed,” MAB spokesperson told the New Straits Times (NST) recently.
The aviation sector has been bracing for the pandemic turbulence for nearly two years.
As a result, some carriers have gone bankrupt without recurring income (demand) and losses incurred from fuel hedging, exacerbated by the evident cash burn rate to service their fixed costs.
These include employees salaries, aircraft financing, hangar rental, amongst others. Read more