EU airlines face strikes and struggle to find workers after summer travel

Some airlines and airports are suffering from post-covid travel demand.

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London — Delays, cancellations, strikes.It was a difficult time for many European tourist hotspots, as airlines and airports struggled to keep up with the subsequent impasse travel demand. COVID-19 Blockage.

Thousands of flights have been canceled and modern travelers are lining up for hours to manage passports and pick up luggage at airports across Europe — and the problem is expected to be protracted.

“This summer’s air travel is full of uncertainty for both passengers and airlines,” Laura Hoi, a equity analyst at Hargreaves Landsdown, told CNBC in an email.

“Long delays and cancellations are consuming while airlines bridge the delicate line between trying to grasp the post-pandemic travel boom and preparing for possible slowdowns as economic conditions worsen. It may discourage a person from traveling. “

According to aviation data company Cirium, 400 flights were canceled at all UK airports between June 24th and June 30th, an increase of 158% from the same seven days in 2019.

And it’s outside the peak summer season — usually between July and early September in Europe.

Heathrow Airport, London’s busiest airport, had more passengers than it could handle, so last week it asked the airline to cut back on flights. Some passengers were unaware that the flight was canceled, while others complained about the long line.

The turmoil will continue until summer.

Stephen Furlong

Stephen Furlong, Senior Industry Analyst at Davy

Meanwhile, low-cost carriers EasyJet We have reduced thousands of flights during the summer to minimize the risk of failure.

Travelers faced similar problems in the United States as they tried to leave on the weekend of July 4. More than 12,000 flights delayed and hundreds canceled..

According to Stephen Furlong, senior industry analyst at Wealth Manager Davie, it’s unlikely that the travel turmoil will go away in the coming months.

“Whether it’s ATC or not, the turmoil will continue until summer. [cargo] “Labor issues of self-harm from driving or ground handling or security staff, or actually from airlines,” he added.

In France in June, a quarter of flights were canceled at major airports in Paris due to a worker strike.

And the disruption caused by more strikes may be on the way.British Airways is a worker Pandemic It will be reversed. And Ryanair Spanish workers went on strike for 12 days in July on weekends, saying they were looking for better working conditions.

What is the cause of the confusion?

There are several reasons for travel turmoil, most of which are industry-wide issues, not country- or airline-specific issues.

“Since spring, the pace at which passengers have returned to the sky has been a bit surprising to airlines and airports. We just don’t have the staff we need for a full summer schedule,” says Alexander Irving. AB Bernstein’s European transport analyst told CNBC’s “Squawk Box Europe” last week.

Many airlines, airport operators, and other companies in the travel sector have fired workers due to business outages during a pandemic. Many of these workers were looking for opportunities elsewhere and did not return to the sector, but others were forced into early retirement.

“Ultimately, we need more staff,” Irving said.

Moreover, given the changing labor market, it is currently difficult to attract new talent. For example, when a worker chooses to quit his job in search of a better working life, he often does not have another job in line. Balance.

Hiring new people is also a medium- to long-term solution, as many travel-related jobs require forced training before workers start work.

At the same time, many of the people who stayed in this sector did not feel sufficient compensation and complained about their working conditions.

That “perhaps ultimately means paying more to people and treating them slightly better,” Irving said of labor issues and strikes.

At Amsterdam Airport Schiphol, a group of cleaners, baggage handlers and security staff will be paid an additional € 5.25 per hour ($ 5.55) this summer, according to Reuters. However, the same airport has announced that it will limit the number of passengers this summer, especially to reduce confusion.

Other countries are also scrambling to improve airport conditions. In Spain, police are hiring more staff at some of the country’s busiest airports, and Portugal is also increasing its border control staff.

“Most companies’ reaction as a pandemic blow was to reduce production capacity in the hope of sustaining low growth, but the pandemic had another consequence. London & Capital Equity Head Roger Jones told CNBC.

In addition to the labor market shortage, he said inflation is also a problem.

“Cost inflation, especially fuel and wages, has made the situation worse and has created a very difficult operating environment that is squeezing profitability,” he said in an email.

British Airways and Air France-KLM, Received financial support from the government during the pandemic to avoid collapse. However, many unions and airlines are now demanding more government support to help revive the sector.

Despite strikes, cancellations and other turmoil, some analysts are still positive about the sector, claiming that the recent situation is “overrated.”

“It’s been overrated by the media and I feel that most of the flights are on time. For example, Ryanair plans this while operating 115% of its pre-Covid capacity. So far, we’ve avoided a lot of confusion, “Davy’s Furlong said in an email.

EU airlines face strikes and struggle to find workers after summer travel

Source link EU airlines face strikes and struggle to find workers after summer travel

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