IATA warns ‘punitive’ regulation could dampen summer peak

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The International Air Transport Association (IATA) has criticised governments in Europe and the US over plans to introduce regulation that will make travel more costly rather than improve operational challenges in the lead-up to the busy summer season.

IATA’s director general Willie Walsh said airlines and airports are “working hard” to deliver a smooth travel experience heading into the Northern Hemisphere peak travel season, but that some governments “appear more keen on punitive regulation than on doing their part to enable hassle-free travel”.

In a statement he specifically pointed to the Dutch government’s “high-handed effort” to slash capacity at Schiphol airport and also criticised the US government’s plan to force airlines to pay compensation for flight delays and cancellations, which would be similar to the European Union’s Flight Compensation Regulation (EU 261).

He added the focus on EU-style passenger rights regulation is “spreading like a contagion” and that proponents of this approach “miss a key fact”.

“EU 261 has not led to a reduction in delays,” he insisted. “That’s because penalising airlines raises airline costs but does not address delays caused by factors over which airlines have no control, such as inefficient air traffic management or staffing shortages at air navigation service providers. 

“The single best thing that Europe could do to improve the travel experience is deliver the Single European Sky. As for other governments contemplating passenger rights regulations, avoiding a repeat of Europe’s mistake would be a helpful starting point,” he added.

The statements come as IATA’s April passenger traffic figures show continually strong demand for air travel.

Domestic air travel demand in April increased 42.6 per cent year over year and was up 2.9 per cent from 2019 levels, representing a full recovery, according to IATA. Domestic demand in March was at 98.9 per cent of 2019 levels.  

April international air demand also continued to grow, increasing 48 per cent from a year prior and reaching 83.6 per cent of 2019 levels, up from 81.3 per cent a month earlier. International capacity increased 38.1 per cent to within 1.3 per cent of April 2019 levels.

European carriers saw a 22.6 per cent year-over-year increase in traffic in April. Capacity rose 16 per cent and load factor climbed 4.5 percentage points to 83.3 per cent, which was the second highest among the regions.

Globally, April total air traffic increased 52.4 per cent year over year and is at 90.5 per cent of pre-Covid levels. In March it was at 88 per cent of 2019 levels. Global capacity increased 39.7 per cent and was at 92.5 per cent of April 2019 levels.

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