DOHA, Nov 10 (Reuters) - High oil prices could delay efforts
by airlines to restore balance sheets weakened during the
pandemic, the head of a global airline industry body warned on
Wednesday.
Crude prices have risen 66% so far this year as economies
exit lockdown and supplies remain tight.
"I think it's going to be tougher, but I don't see that
airlines can avoid that. They will have to strengthen their
balance sheets," Willie Walsh, director general of the
International Air Transport Association, told Reuters.
"For some airlines it will take time and a higher oil price
probably does slow down the recovery period," he said.
Labour shortages are also a concern and represent a real
industry risk for the first time in decades, he added.
On the positive side, forward bookings are increasing and
stretch up to a year ahead as travel restrictions are lifted.
Airlines are likely to add significant numbers of seats
after the United States lifted COVID entry restrictions, but
strong demand will overcome any concerns about overcapacity, the
former head of British Airways owner IAG told Reuters.
(Reporting by Alexander Cornwell, Tim Hepher, Editing by Louise
Heavens)