# Asia&#8217;s airlines ramp up flights, offers as tough COVID travel curbs ease
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2021-10-13
Category: BUSINESS
Category URL: https://financedigest.com/category/business
Meta Title: Asia-Pacific Airlines Increase Flights and Offers After
Meta Description: Asia-Pacific airlines are ramping up flights and offering deals as COVID-19 restrictions ease, leading to a surge in bookings and enquiries.
URL: https://financedigest.com/asias-airlines-ramp-up-flights-offers-as-tough-covid-travel-curbs-easehtml

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By Jamie Freed and Aradhana Aravindan

SYDNEY/SINGAPORE (Reuters) – Asia-Pacific airlines have lost billions of dollars this year, with jets grounded in COVID-19 transportation freezes. Now, as some of the world’s strictest pandemic-related travel rules begin to ease, they’re ramping up flights and ticket offers.

Asian travel agencies and carriers told Reuters they’re [seeing](https://www.financedigest.com/european-airlines-see-travel-withstanding-consumer-squeeze-for-now.html "European airlines see travel withstanding consumer squeeze for now") a surge in bookings and travel enquiries as countries like Malaysia and Vietnam allow domestic flights to resume from this week after months of strict lockdowns.

India is [lifting a domestic capacity](https://www.financedigest.com/virgin-australia-says-high-staff-illness-rates-hampering-capacity-lifting-fares.html "Virgin Australia says high staff illness rates hampering capacity, lifting fares") cap, while Singapore, Thailand and Fiji are opening without quarantine to vaccinated international travellers from select countries.

While [airline industry group IATA does not expect](https://www.financedigest.com/portuguese-airline-tap-swings-to-profit-earlier-than-expected.html "Portuguese airline TAP swings to profit earlier than expected") a significant improvement in Asia-Pacific international travel until “later in 2022 https://www.reuters.com/business/aerospace-defense/iata-sees-sharp-fall-airline-losses-2022-2021-10-04/#:~:text=The%20losses%20for%202021%20were,from%20%24126.4%20billion%20estimated%20earlier.&text=%22We%20are%20past%20the%20deepest,told%20the%20group’s%20annual%20meeting” – predicting cumulative losses of $11.2 billion this year, narrowing to $2.4 billion next year – carriers from AirAsia Group to VietJet Aviation, Singapore Airlines, Fiji Airways and Qantas are already increasing capacity.

The most [important thing is practically](https://www.financedigest.com/changing-face-b2b-business-practices-understanding-timeless-behaviour-important-ever.html "The changing face of B2B business practices – why understanding timeless behaviour is more important than ever.") all governments in the Asia-Pacific region with maybe one or two exceptions are abandoning their COVID-zero strategies and moving to a sort of COVID-normal framework,” said Association of Asia Pacific Airlines Director General Subhas Menon.

Vaccination [rates are also beginning to ramp](https://www.financedigest.com/hungary-ramps-up-rate-hikes-as-war-stokes-inflation-risks.html "Hungary ramps up rate hikes as war stokes inflation risks") up.

While [curbs are easing](https://www.financedigest.com/oil-hits-3-week-high-as-china-eases-covid-curbs.html "Oil hits 3-week high as China eases COVID curbs"), a full return to normal operations is a long way off. IATA estimates global aviation industry [losses from the pandemic will be a towering $200 billion for 2020-2022, and losses in Asia alone were close](https://www.financedigest.com/galois-capital-flagship-fund-to-close-after-ftx-losses.html "Galois Capital flagship fund to close after FTX losses") to $50 billion in 2020. International [travel in the Asia-Pacific region was at around](https://www.financedigest.com/5-time-efficient-ways-to-travel-around-the-philippines.html "5 Time-Efficient Ways to Travel Around the Philippines") 4% of 2019 levels in August.

And though the relaxation of restrictions will open the way for some tourism, initially it will mean a comparative trickle: Thailand [expects only around](https://www.financedigest.com/polyimide-fibers-market-is-expected-to-increase-at-a-healthy-cagr-of-around-5-over-the-forecast-period-of-2021-2031.html "Polyimide Fibers Market is expected to increase at a healthy CAGR of around 5% over the forecast period of 2021-2031") 100,000 foreign visitors this year, down from nearly 40 million in 2019.

Still, there’s pent-up demand from those who have longed to be able to take a break overseas.

Dickson Ng, a 24-year-old consultant based in Singapore, said he plans to [travel to Europe](https://www.financedigest.com/how-to-travel-europe-on-a-budget.html "How to travel Europe on a budget") in January.

“We don’t know if these VTLs (vaccinated travel lanes) could be rescinded, right now there’s opportunity and there’s COVID fatigue, so I think getting out of the country will be a good thing,” he said.

Meanwhile Fiji Airways has had thousands of [bookings since the country on Sunday announced it would open borders to vaccinated travellers from some destinations on Dec](https://www.financedigest.com/gazprom-books-no-yamal-europe-gas-transit-capacity-for-dec-30.html "Gazprom books no Yamal-Europe gas transit capacity for Dec. 30"). 1, the vast majority from Australians, an airline spokesperson said.

BARGAINS VS. [PRICE HIKES](https://www.financedigest.com/sony-hikes-ps5-price-on-economic-pressures-rising-rates.html "Sony hikes PS5 price on economic pressures, rising rates")

Some carriers are already promoting bargain fares.

Vietnamese low-cost carrier VietJet is offering some free domestic one-way tickets, excluding taxes and fees, while Malaysia’s AirAsia has fares as low as 12 ringgit ($2.88) as it ramps up flights.

AirAsia said traffic to its mobile app had surged by more than 140% since the [government relaxed domestic travel rules](https://www.financedigest.com/italys-rightist-government-tightens-rules-for-migrant-rescues.html "Italy’s rightist government tightens rules for migrant rescues").

But Singapore has capped the number of arrivals under its VTL programme at 3,000 a day in total, a tiny fraction of pre-pandemic traffic – a move that has kept ticket [prices higher](https://www.financedigest.com/wall-street-seen-opening-higher-but-u-s-recession-priced-in.html "Wall Street seen opening higher but U.S. recession priced in").

Singapore tour agency Chan Brothers Travel said enquiries had increased 50-fold in the last [week since VTLs were added to more countries](https://www.financedigest.com/eu-countries-eye-deal-on-more-energy-measures-within-weeks.html "EU countries eye deal on more energy measures within weeks") including South Korea, the United States and Britain.

Return economy-class fares from Singapore to South Korea have nearly [doubled to around](https://www.financedigest.com/the-double-chamber-prefilled-syringes-market-to-throw-its-innovation-based-weight-around.html "The Double Chamber Prefilled Syringes Market to throw its innovation-based weight around") S$1500 ($1,107.50) from S$800 previously, a spokesperson at Singapore’s Dynasty Travel said.

Some travellers may wait for the initial price [surge for flights](https://www.financedigest.com/london-flight-hotel-fares-surge-ahead-of-queens-funeral.html "London flight, hotel fares surge ahead of Queen’s funeral") to pass, but we can expect quite a number of travellers taking to the skies by the first half of 2022,” she said.

($1 = 4.1630 ringgit)

($1 = 1.3544 Singapore dollars)

(Reporting by Jamie Freed and Aradhana Aravindan; Additional reporting by Liz Lee in Kuala Lumpur and Chen Lin in Singapore; Editing by Kenneth Maxwell)


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