International airlines flocked back to South Africa following the announcement that the country’s borders could reopen on October 1.
However, the restrictive international travel regulations that the government continues to impose on the market since the reopening, have led to airlines operating mostly empty aircraft on international routes to and from South Africa. This is, in turn, disrupting clients’ travel arrangements, as airlines cancel and amalgamate flights in an effort to manage the fluid demand.
Barsa chair, Carla da Silva, told Travel News that airlines were reporting dismal load factors to and from South Africa, averaging between 20% and 40%.
“As you can imagine, this is a very difficult time for airlines as they try to navigate the correct balance between supply and demand. Airlines usually rely on all sectors of the market to fill their aircraft but the current regulations allow only business travellers to enter South Africa if originating from high-risk countries. This reduction in demand is compounded by a reduction in business traffic – as corporations have become accustomed to conducting business on a virtual platform – a short-term decrease in demand for long-haul travel destinations, and a slow return in consumer confidence for flying. The second wave of infections in Europe is also impacting the situation,” said Carla.
She explained that under the current circumstances it did not make sense for airlines to fly aircraft internationally with only five or 10 passengers and said that in some cases airlines were having to amalgamate flights to maximise the efficiency of their operations.
EgyptAir regional gm South Africa, Hossam Zaky, said the airline was planning on operating (subject to availability) just three flights to South Africa in November, which were not yet full.
“Our load factor is very low in November and does not exceed 18% and 28% for our flights on November 12 and 13. December is supposed to be high season for South Africa but, despite this, our flights during this month are still almost empty,” said Hossam.
He added that rumours that South Africa would go back to lockdown level three in December (these have since been dismissed by the President) were affecting passengers’ confidence to go ahead and book their flights. He also mentioned that in the event that EgyptAir had to cancel a flight due to low load factors, it would ensure that the flight was cancelled long enough before departure to secure time to inform their passengers about new dates.
“We are all trying to navigate through this storm and there is little to work with in terms of demand due to the restrictive government regulations,” said Carla. “Airlines are advising agents that their schedules are subject to change and cancellation because of this situation and we encourage agents to make their clients aware of the fluidity of situation. We are relying on the trade to support us and to build up load factors and we do believe that the situation will improve, as regulations are slowly eased.”
Ceo of Asata, Otto de Vries, agreed that it was important for agents to fill the role of a travel adviser for clients at present. “As long as COVID-19 is around, conditions can change at any minute and the situation is sensitive. Travel agents are encouraged to explain the situation as transparently as possible to their clients and to ensure that they indemnify themselves against liability should the airline amend its schedule.”
An agent, who did not wish to be named, commented that the situation was extremely disruptive for clients and that the changes in flight arrangements meant that clients might have to go for a second PCR test, at around R1 000 per test, in order to meet airline and country entry requirements that require test results to have been obtained within 72 hours or sometimes 48 hours of departure.
Barsa also briefed Parliament’s Portfolio Committee on Tourism this week stating that some airlines had reduced their capacity and frequency of flights to South Africa due to the uncertainty around the regulatory environment. It added that some airlines had even threatened to leave South Africa and use neighbouring countries as their new hubs. “The biggest risk for South Africa is losing its strategic hub status, as the country currently plays the role of the gateway to Africa and Southern African Development Community countries,” said Barsa in its address.
Acsa ceo, Mpumi Mpofu, told media this week that the onset of the COVID-19 pandemic had caused Acsa earnings to take a drastic downturn due to the decrease in passenger volumes.
“We anticipate that the impact on traffic volumes and airline sustainability will be long term. The only certainty is that high levels of uncertainty about the future will prevail for some time. The resilience of domestic and international carriers is unclear and the exposure of airlines from the Middle East, which rely on oil-sourced funds, is concerning in light of projected low oil prices. Capacity rationalisation is inevitable and we are prepared to look for new ways of diversifying our revenue,” said Mpumi.