Australia (and the world) is still grappling with the chaos of travel. But it could be worse

Extremely long lines at airports and at immigration and customer desks, frequent flight delays or cancellations, often at the last minute, lost baggage and now-surging fares are not limited to Qantas, or Virgin, but are commonplace globally.

The airport responded by limiting the number of passengers and asking airlines to limit their ticket sales. London’s Heathrow sparked controversy this month when it capped the number of passengers to 100,000 per day and ordered airlines to halt ticket sales until mid-August. London’s second international airport, Gatwick and Amsterdam’s Schiphol, has taken similar action.

The pandemic brought the global travel industry to a virtual standstill, adding to pressure on airlines around the world. Credit:AP

Airlines, which are pouring capacity back into the market as demand returns at surprising speed, are now picking up capacity to bring their operations within their current capabilities. British Airways has announced plans to cut 10,000 flights between now and the end of October. Qantas and Virgin, along with many European and North American carriers, are also reducing capacity.

At the heart of the problem facing the entire sector is people, or rather their lack of them.

Several million people (there are estimates of around 2.5 million) from baggage handlers to pilots, were made redundant during the pandemic – Qantas laid off the best part of its 10,000 employees – as airlines and their service industries struggle to save money.

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The rate of rebound in demand for travel and the suddenness of returning demand has outpaced the sector’s ability to respond.

Many of those laid off have found new jobs or are wary of returning to industries still operating with the pandemic cloud hanging over them – the sector is just another new type of virus deadlier than any other shutdown – and recruiting, training and securing security clearances for new employees. in the midst of world competition for experienced staff takes time.

Schedules were also disrupted by COVID-related absenteeism, which exacerbated the effects of the underlying labor insufficiency experienced by passenger volumes.

The strain on capacity is most intense at airports, which appear to be even less prepared than airlines for the degree to which travel has resumed and are having greater difficulty attracting people to provide the basic infrastructure and services that airlines need.

Low pay rates, 24-hour roster, physically demanding work and the need to be in a physically unattractive location in an environment where many workers can now spend at least part of their week working from home.

Airports globally are struggling to cope with demand as the world begins to travel.Credit:Oscar Colman

Some airports, and airlines, are now offering a “golden hello” of several thousand dollars to entice prospective employees to sign up while paying retention bonuses to existing workers to ensure they stay.

At the same time, there is increasing worker unrest, with unions in Europe – and Australia – threatening industrial action if they are not given more rewards for work that has become more demanding after more than two years of job losses and pay freezes.

Aviation is a very large, complex and fragile ecosystem with countless dependencies, almost all of which are under acute stress.

Adding to the challenges for airlines – which have huge operational leverage, in both directions – as they seek to emerge from this period of post-pandemic chaos and regain operational stability are soaring jet fuel prices.

Globally, airlines have lost more than $200 billion since the advent of COVID and are still losing money today.

The surge in oil prices as the world recovers from the worst of the pandemic has been exacerbated by Russia’s invasion of Ukraine and Western efforts to strangle oil revenues from the world’s third-largest producer.

Jet fuel prices are now, according to the International Air Transport Association, 85.7 percent higher than last year. That’s now pouring into fares, adding to discontent among passengers who are being asked to pay more for an uncomfortable and unreliable experience.

None of the problems facing this sector can be solved easily or quickly. Over time, if these pandemics are accommodative, they will be resolved as airports and airlines racing to overcome bottlenecks in their operations gradually rebuild their capabilities.

The global nature of the challenge and the fact that the pandemic, its impact, and responses from governments and other authorities are unpredictable underscores how misguided sometimes violent criticism of businesses and their executives – Qantas’ Alan Joyce has become a particular target in this market – may be.

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The pandemic disrupted most things and most businesses and continues to do so even as most major economies (besides China) are now in a “living with COVID” phase. Flights – and will remain for some time – are more disrupted than most.

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