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* Emirates fears "significant traumas" from new variant
* easyJet reports softening of demand in latest quarter
* Battered industry aiming to restore capacity in coming
months
By Aziz El Yaakoubi and Kate Holton
DUBAI/LONDON, Nov 30 (Reuters) - Airline bosses voiced
concern on Tuesday that travel restrictions linked to the
emergence of the Omicron variant of the coronavirus risked
blowing an industry recovery off course.
The strongest warning came from Emirates airline President
Tim Clark who said a major hit to the peak December travel
season would cause "significant traumas" in the global aviation
business.
British budget airline easyJet also spoke of a
softening in demand in recent weeks as the resurgence of the
virus in parts of continental Europe prompted customers to
rethink city break plans.
The discovery of the Omicron variant, first reported in
southern African last week, dealt a blow to the industry just as
it had recovery in its sights, especially following the easing
of U.S.-bound travel https://www.reuters.com/world/us/international-travellers-head-united-states-flights-reopen-2021-11-08
earlier in November.
Multiple countries including Japan, the United States,
Britain and Israel have imposed travel curbs in order to slow
the spread of the new variant which it is feared could prove
more resistant to vaccines.
Clark said the next few weeks, the run-up to the Christmas
and New Year holiday season, would prove critical for the
airline industry as scientists assess the risks.
"I would say probably by the end of December, we'll have a
much clearer position," Clark said in an interview for the
Reuters Next https://reutersevents.com/events/next conference.
"But in that time, December is a very important month for
the air travel business," he added. "If that is lost, or the
winter is lost to a lot of carriers, there will be significant
traumas in the business, certainly the aviation business and the
periphery."
LOSING MONEY
The impact of travel restrictions was evident in financial
results published on Tuesday by easyJet and Scandinavian
operator SAS.
EasyJet reported a headline loss before tax of 1.14 billion
pounds ($1.5 billion) for the year to the end of September, at
the higher end of forecasts, while SAS remained in the red in
the August to October quarter.
EasyJet said it was difficult to gauge the effect of the new
variant but that broader concerns over the coronavirus were
still influencing travellers.
"We do see that there has been an impact, particularly on
the short-term departures, but it's not to the same level of
impact and drop-off we've seen in previous times when
restrictions have been introduced," easyJet Chief Executive
Johan Lundgren told reporters.
Both easyJet and SAS noted that there was strong appetite
for travel when curbs were removed.
"We remain cautious due to prevailing uncertainties, but see
that underlying demand is healthy once restrictions are lifted,
both for business and leisure travel," SAS said.
(Reporting By Aziz El Yaakoubi in Dubai, Anna Ringstrom in
Stockholm and Kate Holton in London; Writing by Keith Weir;
Editing by Jan Harvey)
