With the discovery of the “Nu” variant of the coronavirus from southern Africa, the shares of airlines and aircraft manufacturers have fallen on worldwide markets.
In view of the appearance of this new variant of the coronavirus, several governments are once again enforcing travel restrictions to southern African countries.
According to the Financial Times, countries such as Israel, India, and Singapore began to impose controls on arrivals in the nations affected by the “Nu” variant, and airlines such as Virgin Atlantic, British Airways, and KLM are modifying their itineraries to South Africa in view of the sanitary emergency.
Please check our statement on the Dutch entry ban for travelers coming from certain southern African countries ➡️ https://t.co/V76UT33Lhg
— KLM (@KLM) November 26, 2021
“Travel volumes would fall and industry recovery would be postponed until new effective vaccines are developed and implemented. Conversely, if existing vaccines are found to be relatively effective, the outlook for global travel should recover quickly”, HSBC Aviation Analyst Andrew Lobbenberg told the Financial Times.
Major European airline groups have seen their shares fall: Air France – KLM -9.67%, Lufthansa Group -12.8%, and IAG -14.2%. Airbus dropped by 11.5% and Safran by 10.2%. In the United States, American fell 8.8%, Delta -8.3%, and United -9.6%.
Middle East airline operators could also be affected.
European Commission President Ursula von der Leyen confirmed that she has proposed setting up an “emergency brake” to stop flights to the European Union from South Africa, Botswana, Zimbabwe, Lesotho, Eswatini, and Namibia.
Operators from the Middle East such as Qatar Airways, Etihad Airways, and Emirates are the preferred carriers for stranded travelers, so they may be affected by the decisions of the European Union and the United Kingdom.
Facing this new “wave” of restrictions, IATA Director General Willie Walsh called on governments to “use the experience of the past two years to move toward a coordinated and data-backed approach that finds safe alternatives to border closures and quarantines”.
” Governments are responding to the risks of a new variant of the coronavirus in an emergency mode by causing fear among travelers,” Walsh added, emphasizing that restrictions are not a long-term solution to control variants.
