Tag: Bust

In pandemic travel bust, cargo shipments of Botox and cheese replace passengers for starving airlines

  • Air cargo prices have surged in the pandemic as capacity plunged.
  • International travel has dropped sharply, taking belly-cargo space out of the market.
  • Some passenger carriers have started flying cargo-only flights in an effort to boost sales.



American Airlines fleet services employees prepare to load cargo pallets on a 777-300 at Dallas/Fort Worth International Airport (DFW) bound for Frankfurt Airport in Germany during the cornoavirus (COVID-19) pandemic on March 20, 2020 in Dallas, Texas.


© Provided by CNBC
American Airlines fleet services employees prepare to load cargo pallets on a 777-300 at Dallas/Fort Worth International Airport (DFW) bound for Frankfurt Airport in Germany during the cornoavirus (COVID-19) pandemic on March 20, 2020 in Dallas, Texas.

The coronavirus pandemic has created a global crunch in air cargo markets and retailers like Alex Motamedi in Harbor City, California are feeling the pain.

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“We’ve been so desperate that we take anything and first available,” said Motamedi, general manager of La Espanola Meats, which sells imported Spanish ham, cheese, sweets and other products.

Certain products are arriving a month later than usual and air freight costs have doubled in some cases, Motamedi said. Such perishable items often arrive by air so they don’t spoil.

The root of the problem is the slump in air travel during the pandemic, which has forced carriers to drastically reduce flights to help curb their losses, taking air cargo capacity out of the market and driving up prices.

About half of the world’s air freight demand is usually met by space in passenger planes’ bellies. That means a flight home from a vacation in Greece or Iceland might be shared with goods like feta cheese or cod.

New Covid-19 cases, lockdowns and a web of travel restrictions have had an outsize impact on international travel, while domestic demand has recovered some ground. Demand for international air travel was down close to 90% in September from a year ago, according to the International Air Transport Association, a trade group whose members operate most of the world’s airline capacity.

Seeing a bright spot in otherwise bleak landscape, United, Delta and American this year started flying cargo-only flights. All three already had cargo businesses but their customers’ goods usually fly on passenger flights.

What began as cargo-dedicated flights to transport personal protective equipment and other medical-related items at the start of the pandemic has expanded. Airlines have been redeploying their aircraft to help deliver produce, apparel, electronics, fish, like Scottish salmon, and pharmaceuticals, executives say. American Airlines’ vice president of commercial cargo, Roger Samways, said the airline saw an increase in Botox shipments to the U.S. this spring.

“We hadn’t seen quantities of this nature” before, he said.



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Capacity remains limited, making air cargo more expensive.

Cargo rates from Europe to the U.S. this month were about $4 a kilogram, up 150% from a year ago, according to the TAC Index. From mainland China and Hong Kong to the U.S., prices on Nov. 2 were about $5 a kilogram, up 64% from a year earlier.

The fourth quarter is the peak period for air cargo as it coincides with the holiday season, a surge that could drive prices even higher, particularly without the

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A THIRD of hotel and food businesses fear going bust this year

A THIRD of hotel and food businesses had ‘no or low’ confidence they would survive to next year even BEFORE the national lockdown was declared

A third of accommodation and food services businesses had ‘low or no’ confidence they would survive until the end of the year – even before the national lockdown was declared.

The alarming findings emerged in the latest official survey on the impacts of the coronavirus pandemic on the economy and society.

A swathe of hospitality firms are facing disaster after Boris Johnson imposed a month-long squeeze in England from today to control a surge in infections. 

But according to the Office for National Statistics research, the picture was already grim even before the restrictions emerged. 

The UK-wide survey found between October 5 and 18 just 75 per cent of accommodation and food service businesses were trading, compared with 85 per cent across all industries. 

Some 32 per cent of accommodation and food services businesses had no or low confidence that their businesses would survive the next three months

Some 32 per cent of accommodation and food services businesses had no or low confidence that their businesses would survive the next three months

GDP is now predicted to be 11 per cent lower this year in real terms

It also had the highest percentage of companies with no cash reserves, at 6 per cent.

Some 32 per cent had no or low confidence that their businesses would survive the next three months.

Of businesses not permanently stopped trading, 17 per cent intended to use increased homeworking as a permanent business model in the future.

The Bank of England pumped another £150billion into the economy as lockdown began today – amid fears that it will send GDP plummeting and destroy jobs.

The Bank has increased its mammoth bond-buying programme to £895billion, warning that UK plc’s recovery was already ‘softening’ before the squeeze was announced on Saturday. Interest rates are being kept on hold at the record low of 0.1 per cent. 

The economy is projected to shrink by 2 per cent between October and December, but the Monetary Policy Committee says the UK is likely to dodge a double-dip recession.

GDP is now predicted to be 11 per cent lower this year in real terms, worse than the 9.5 per cent it suggested in August. The Bank’s central expectation is that the economy will not regain its level from last year until the start of 2022.

The MPC said unemployment is set to peak at 7.75 per cent in the second quarter of next year – with government bailouts pushing back the worst of the impact from the 7.5 per cent high the Bank had anticipated in this quarter. The current rate is 4.5 per cent, suggesting another million people face losing their jobs.

An 11 per cent contraction in GDP this year would be the worst for 300 years - eclipsing the downturn sparked by the First World War and Spanish Flu

An 11 per cent contraction in GDP this year would be the worst for 300 years – eclipsing the downturn sparked by the First World War and Spanish Flu

An eye-watering 5.5million are set to be on

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Nearly 200 airports in UK and Europe could go bust due to collapse in air travel

Nearly 200 airports across the UK and Europe are at risk of going bust within months due to the dramatic collapse in air travel caused by the coronavirus pandemic, the European airports trade body warned on Tuesday.



a man holding a sign: Photograph: Kirsty O’Connor/PA


© Provided by The Guardian
Photograph: Kirsty O’Connor/PA

Airports Council International Europe (ACI Europe), which represents airport operators, said it estimated that 193 out of Europe’s 740 commercial airports face “insolvency in the coming months if passenger traffic does not start to recover by the year-end”.

The trade body said the at risk airports employ 277,000 people and generate collective annual revenues of €12.4bn (£11.2bn).

Olivier Jankovec, director general of ACI Europe, said the figures “paint a dramatically bleak picture” for the future of the aviation industry, which has already suffered tens of thousands of job losses.

“Eight months into the crisis, all of Europe’s airports are burning through cash to remain open, with revenues far from covering the costs of operations, let alone capital costs,” Jankovec said. “Governments’ current imposition of quarantines rather than testing is bringing Europe’s airports closer to the brink with every day that passes.”



a man holding a sign: The CAA is reported to have warned Heathrow’s owners that it could be nationalised if it doesn’t get new funds.


© Photograph: Kirsty O’Connor/PA
The CAA is reported to have warned Heathrow’s owners that it could be nationalised if it doesn’t get new funds.

“In the midst of a second wave, ensuring safe air travel continues to be our primary concern. It’s crucial that we reduce the risks of importation and dissemination as much as possible. But surely we can do a much better job of reducing those risks by testing air passengers rather than with quarantines that cannot be enforced.”

A spokeswoman for ACI Europe said the organisation would not name the airports at risk for fear of sparking panic among employees and travellers. However, she said most of the airports at greatest risk were small regional airports, which have seen the sharpest declines in passenger numbers. Airports across mainland Europe and all home nations in the UK are thought to be included on the list.

Passenger numbers at Europe’s airports in September fell by 75% compared to the same month year earlier. ACI Europe said total “lost passengers” since the pandemic began now stands at 1.3 billion.

While smaller airports are most at risk, ACI said “larger European airports and hubs are not immune from the critical financial risk”.

“They have cut costs to the bone and have resorted to the financial markets to shore up balance sheets and build emergency war chests. This sudden increase in debt – an additional €16bn for the top 20 European airports – is equivalent to nearly 60% of their revenues in a normal year. This, along with the fact that these airports had to make thousands of highly skilled workers redundant, clearly jeopardises their future.”

The UK’s aviation regulator is reported to have warned the owners of Heathrow that it could be nationalised if they do not provide fresh funding to help it weather the pandemic.

The Civil Aviation Authority (CAA) said that without emergency

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Summer Vacation 2020 Was a Bust. But Fall Is a Better Time to Travel Anyway.

During the coronavirus-induced closure of Amangiri, its general manager Julien Surget fielded countless requests from people begging to ride out their stay-at-home orders at the hotel. One even offered to buy out the property for a month. While their attempts were futile—following state restrictions and safety protocol, Amangiri closed for two months in March—they had the right idea.



a chair sitting in front of a mountain: Your annual summer vacation was likely a bust this year. But fall is a much better time for travel, when the weather is better, crowds are thinner, and social distancing-friendly domestic destinations are plentiful.


© Camp Sarika
Your annual summer vacation was likely a bust this year. But fall is a much better time for travel, when the weather is better, crowds are thinner, and social distancing-friendly domestic destinations are plentiful.

The celebrity-adored Utah hideaway is seemingly in the middle of nowhere, surrounded by nothing but desert, sagebrush, and dramatic sandstone mesas that glow in hues of beige, burnt siena, and mauve following the arc of the sun. (For that reason, it’s also quite possibly the most Instagrammable hotel in North America.) With just 34 suites and one villa, Amangiri is made for social distancing. So too is its new sister property, Camp Sarika, an ultra-luxurious encampment of ten tented pavilions just a five minute drive from the main hotel.



Like its sister property, Amangiri, Camp Sarika is surrounded by hundreds of acres of secluded Utah desert.


© Camp Sarika
Like its sister property, Amangiri, Camp Sarika is surrounded by hundreds of acres of secluded Utah desert.

Like many of their peers, Amangiri and Camp Sarika have been operating at reduced capacity since reopening in May to maximize safety. On any given day, there are no more than 60 guests on site. “Considering we’re on 600 acres, 10 acres per person isn’t a bad deal,” Surget says.

Gallery: Vacation Inspiration: 10 Places to Go This August (Town and Country)

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