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United CEO says mask wearing will help demand, calls planes ‘uniquely safe’

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CHICAGO (Reuters) – United Airlines’ chief executive said on Wednesday that lessons learned about preventing the spread of COVID-19, including wearing masks, will underpin a recovery in travel demand and called airplanes “a uniquely safe environment.”

Chicago-based United (UAL.O) expects revenues, which fell 87% in the second quarter from a year ago, to recover over time to around 50% of 2019 levels and plateau there until a vaccine is widely distributed.

“To get back to that 50% level, I think we’re going to have to get people understanding that flying somewhere instead of getting in a car and driving for 13 hours, you’re safer actually flying. And I very, very much believe that to be the case,” CEO Scott Kirby told investors.

Airlines say hospital-grade air filtration systems coupled with face masks and better cleaning make air travel safe, despite the coronavirus pandemic that has crushed demand.

United is expanding its mask policy to all of its airport areas across the world starting on July 24 and will ban passengers from flying if they do not comply.

Kirby believes the airline can reduce its daily cash burn, which reached $40 million in the second quarter, to between $15 million and $20 million in the fourth quarter, but halting it all together will depend on demand — which he said saw its deepest drop in history in the June quarter — slowing to a 50% decline.

He said optimism about a recovery near the end of the quarter faded as U.S. COVID-19 cases began surging again, forcing some states to scale back reopening plans.

United flew only a fraction of its normal capacity in the second quarter and expects to fly about 35% of its normal schedule through September.

It sees passenger revenues down by about 83% in the third quarter, versus a 93.5% decline in the second. Before the COVID resurgence, it expected third-quarter revenues to fall less than 80%.

In terms of international passenger revenue, which analyst expect to rebound more slowly and to which United is more exposed than large U.S. peers, the airline believes the worst decline has passed and sees the potential for a quick recovery of its international routes, noting pockets of demand.

United President Brett Hart said there are “productive discussions” on U.S. and European airlines’ request for a joint U.S.-EU COVID-19 testing programme to again allow people to travel between the United States and Europe.

Reporting and photo: Reuters

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Maldives celebrates arrival of 2024’s 1 millionth tourist

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Maldives on Thursday welcomed the one millionth tourist to visit this year.

The one millionth tourist is a Thai named Sutapa Amonwivat, who arrived from Singapore with her husband and two children. This is her second visit to Maldives.

Maldives Marketing and Public Relations Corporation (MMPRC) and the Ministry of Tourism gave a warm welcome to Sutapa at the Velana International Airport (VIA) Thursday afternoon. She was welcomed at the VIA by tourism minister Ibrahim Faisal, MMPRC Managing Director Ibrahim Shiury and senior officials of various relevant agencies.

After welcoming her with traditional offerings, she was presented with various gifts by the ministry, MMPRC, customs, immigration, Maldives Association of Travel Agents and Tour Operators (MATATO) and Trans Maldivian Airways (TMA).

Maldives reached one million tourists in June, three weeks earlier than last year. The number of tourists reached one million on July 16, 2023.

Maldives expects to reach 2 million tourists this year.

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New air route connects Chongqing to Maldives

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Chongqing Airlines on Monday began its inaugural flights to Maldives.

The Chongqing-Male route, scheduled three times a week, is expected to strengthen the bonds between China and the Maldives, opening up exciting new opportunities for tourism and cultural exchange.

The inaugural flight was welcomed upon its arrival at Velana International Airport (VIA) in Maldives, where local officials and tourism representatives expressed their enthusiasm for this new development.

“We warmly welcome our friends from China to our beautiful islands. This new connection strengthens our bonds and opens up new opportunities for tourism,” the tourism ministry said on X.

Maldives currently welcomes four airlines from China, including China Eastern, Beijing Capital Airlines, Xiamen Airlines.

In January, Maldives government urged tourism stakeholders in both Maldives and China to ramp up efforts to restore China’s position as the primary source market for Maldives tourism, a status held before the onset of Covid-19.

China, being the largest source market for Maldives tourism before the pandemic, saw a resumption of tourist arrivals from January 2023 after a three-year hiatus due to the pandemic. In 2023, the Maldives welcomed 187,118 Chinese tourists, marking a significant recovery in numbers. This year, the Maldives has welcomed the most number of tourists from China, with over 107,940 or 11.5 percent of total arrivals by June 12. 

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CROSSROADS Maldives Introduces Weixin Pay at resorts for seamless guest experience

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CROSSROADS Maldives has introduced WeChat Pay, widely known as Weixin Pay in China, across its world-class resorts, SAii Lagoon Maldives, Curio Collection by Hilton, and Hard Rock Hotel Maldives. This payment option is made available to enhance the convenience and overall experience for guests from China, making their stay in the Maldives more enjoyable and hassle-free.

Understanding the needs of the diverse guests, CROSSROADS Maldives has integrated WeChat Pay into operations, allowing guests from China to easily and securely conduct transactions using a payment method familiar to them. The introduction of WeChat Pay is a testament to CROSSROADS Maldives’ dedication to enhancing guest satisfaction by offering exceptional experiences at every turn. What is also expected through this initiative is that the guests could benefit from better foreign exchange rates, translating to better savings on their expenditures during their stay.

The option is available for guests in-house conveniently at both resorts as well as across the Marina at CROSSROADS Maldives where a wider variety of unparalleled dining and retail experiences are available for all guests. The day visitors from China will also therefore equally benefit from this new introduction at the Maldives’ premier multi-island integrated leisure destination.

SAii Lagoon Maldives, Curio Collection by Hilton, is a vibrant tropical escape that offers unique and locally inspired experiences. The resort features spacious rooms and villas, a variety of dining options, and an array of recreational activities designed to cater to the desires of modern travellers. Guests can escape to the island’s SAiisational natural beauty, enjoy water sports, and indulge in spa treatments, all while relishing the personalised service that defines Hilton’s Curio Collection.

Hard Rock Hotel Maldives brings the iconic Hard Rock spirit to the tranquil shores of the Maldives. This family-friendly resort offers a perfect blend of relaxation and entertainment, featuring music-inspired experiences, live performances, and the brand’s signature amenities. With luxurious accommodations, diverse dining options, and a plethora of activities for all ages, Hard Rock Hotel Maldives ensures an unforgettable holiday experience for every guest.

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