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Highlights
- BA has declared one more round of flight terminations, cutting 10,000 flights to and from Heathrow Airport.
- The carrier decided to lessen its short-haul timetable by 8%.
- This happened after the daily cap of 100,000 placed on passenger numbers this summer was extended by six additional weeks.
As staff shortages continue to impact the aviation industry, British Airways has declared one more round of flight terminations, cutting back on 10,000 flights to and from Heathrow Airport until the end of March 2023. The carrier decided to lessen its short-haul timetable by 8%.
This happened after the daily cap of 100,000 placed on passenger numbers this summer was extended by six additional weeks, until the end of October, by the London airport. Also, the airport urged airlines to sell fewer flights to adapt to the ongoing staff shortfalls.
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Heathrow’s appeal came along the backdrop of a gruelling post-pandemic revival. With the demand for business travellers and tourists growing after the Covid-related restrictions, the scarcity of staff has created many issues. This has resulted in long queues and airport mismanagement over Easter, spring half-term and initial summer months.
British Airways, the largest airport operator, has already cancelled tens of thousands of flights over the summer months, aiming to reduce the burden set off due to staffing difficulties, which has negatively impacted airports and the airline itself.
Earlier this month, it also deferred the sales of short-haul flight tickets from Heathrow as it revised its outlook for the number of aeroplanes required considering the capacity cap of Heathrow. On Monday, British Airways said that it was looking forward to further increasing the cancellations in its roster, going in line with the trend that was started in May.
Amid the chaos in the travel sector, UK investors can keep an eye on these 3 aviation stocks suggested by Kalkine Media®, which can help strengthen their portfolio as the aviation industry bounces back to normalcy over time.
International Consolidated Airlines Group SA (LON: IAG)
The shares of the carrier owned by the International Airlines Group, British Airways, were down by 0.07% while trading at GBX 107.38 at 11:47 AM (GMT+1) on Tuesday. The airline group falls under the FTSE 100 index and currently holds a market capitalization of £5,323.46m. IAG’s turnover (on the book) stands at £3,643,097.68 as of 23 August. However, the performance of the airlines has deteriorated lately, with the aviation industry being hit by the pandemic. IAG’s returns thus stand in the negative zone on an annual and YTD (year-to-date) basis, at -32.46% and -22.66%, respectively. Meanwhile, its EPS (earnings per share) also lies in the negative territory, at -0.59.
Easyjet plc (LON: EZJ)
The shares of the UK-based budget airline group operating worldwide, Easyjet plc, were up by 0.52% while trading at GBX 366.40 at 11:55 AM (GMT+1) on Tuesday. The low-cost airline falls under the FTSE 250 index and currently holds a market capitalization of £2,762.95m. EZJ’s turnover (on the book) stands at £2,003,967.86 as of 23 August. However, the performance of airlines has worsened lately, and its returns stand in the negative zone on an annual and YTD basis, at -54.09% and -34.03%, respectively. Meanwhile, its EPS also lies in the negative territory, at –1.59.
Wizz Air Holdings plc (LON: WIZZ)
The shares of the ultra-low-cost transporter, Wizz Air Holdings plc, were up by 2.57% while trading at GBX 2,154.00 at 12:02 AM (GMT+1) on Tuesday. The Swiss-based airline falls under the FTSE 250 index and currently holds a market capitalization of £2,164.53m. WIZZ’s turnover (on the book) stands at £907,953.41 as of 23 August. However, the performance of the airlines has gone down, and its returns thus stand in the negative zone on an annual and YTD basis, at -55.64% and -48.50%, respectively. Meanwhile, its EPS also lies in the negative territory, at –6.33.