Connect with us

Business

American and Southwest rethink summer flight adds as demand stalls

Published

on

(Reuters) – American Airlines (AAL.O) and Southwest Airlines (LUV.N) are rethinking the number of flights they had planned to add to their schedules for August and September as COVID-19 cases accelerated in the United States, passing 4 million on Thursday.

Both airlines had added capacity more aggressively than competitors Delta Air Lines (DAL.N) and United Airlines (UAL.O) when demand started to pick up in May and June, but now optimism has waned as some states scale back reopening plans and expand quarantines. Demand is not forecast to fully recover before a vaccine.

American, the world’s largest carrier, expects third-quarter capacity to be down about 60% from a year ago, lower than previously forecast, and is reviewing plans for the fourth quarter.

“We’ll add back only what makes sense,” American Chief Executive said on an investor call.

Shares in American rose 3% while Southwest stock was flat.

Southwest, which analysts have forecast to weather the coronavirus pandemic better than larger U.S. carriers thanks to its domestic focus and lower-cost structure, said weakening revenues was increasing its daily cash burn rate to $18 million in July from $16 million in June.

Its average daily cash burn is seen stalling at $23 million per day over the third quarter.

American, Delta and United each expect an improvement in their burn rates over the rest of the year, but say halting the cash bleed entirely will depend on demand.

American burned about $55 million a day in the second quarter, which it ended with $10.2 billion in liquidity.

Southwest had $15.5 billion liquidity at the end of June.

Both airlines had warned of job reductions in the fall, though Southwest said it does not plan to pursue furloughs or layoffs this year thanks to strong employee take-up for extended leaves or early retirements that will generate $400 million in cost savings in the fourth quarter.

U.S. airlines received a $25 billion government bailout to cover payroll through September, and unions are lobbying for a second package to help keep workers employed through March.

To reassure passengers on the safety of air travel during the pandemic, large U.S. airlines have recently toughened their policies on face masks, with Southwest telling customers on Wednesday that if they can’t wear a mask for any reason, they should not fly. Only children under the age of two are exempt.

Southwest swung to a $1.5 billion net loss, or $2.67 per share, in the second quarter, as total operating revenue fell 82.9% to $1.01 billion.

At American, the net loss excluding items was $3.4 billion, or $7.82 per share, while operating revenue plunged 86.4% to $1.62 billion.

Alaska Air Group (ALK.N), which reported a second-quarter net loss of $214 million on Thursday, said it expected its capacity to be down about 35% in the fourth quarter, forcing it to cut about 7,000 of its 23,000 employees.

Meanwhile, budget carrier Spirit Airlines (SAVE.N) is scheduling big capacity adds in August and September, stoking analyst concerns of a price war given weakening demand and bookings.

Reporting and photo: Reuters

Business

Indian influencer Niki Mehra in Maldives

Published

on

Maldives Marketing and Public Relations Corporation (MMPRC/ Visit Maldives) hosted a familiarisation trip with Amilla Maldives for high-end influencer, Niki Mehra, from India to experience the luxury and romantic offerings of the Maldives from 3rd – 6th May 2024.

The familiarisation trip was a great opportunity to Niki Mehra, a renowned Indian model, fashion, beauty and travel content creator and social media influencer with over half a million followers who has carved a niche in the Indian fashion industry with her unique sense of style. During her time in the Sunny Side of Life, Niki Mehra showcased luxury to romantic experiences of the destination.

The trip promoted Maldives through social media platforms of Niki Mehra while highlighting experiential itinerary offerings of the Maldives. Additionally, the influencer trip assisted MMPRC in propelling growth in the luxury travel segment and honeymoon market by showcasing the Maldives as a premier honeymoon destination for the Indian travellers.

The Indian market has been a strong market for the Maldives over the years, currently ranked number 6 with 46,970 tourists as of 13th May 2024. Additionally, MMPRC showcased the Maldives in OTM and SATTE held earlier this year. MMPRC is committed to boosting the arrivals from the market and has exciting marketing activities planned for future, including joint campaigns, familiarisation trips, participation in major events and other campaigns which provides numerous opportunities to showcase the breathtaking Maldives to the market, attracting more Indian travellers.

Continue Reading

Business

130 hotels in The Prestige Collection with 4 Maldives properties

Published

on

The Prestige Collection has reached 130 hotels in its portfolio, continuing to uphold quality and excellence as core pillars. It represents the most exclusive selection within Keytel, the world’s first alliance of independent hotels.

Since its establishment in 2007, The Prestige Collection has been dedicated to meeting the growing demand for luxury hotels, becoming a reference for hospitality industry specialists. Despite its focus on independent hotels, the collection has successfully attracted prestigious properties from international luxury chains such as Rosewood Villa Magna, Mandarín Oriental Ritz Madrid, and Fairmont Mayakoba in Riviera Maya. These hotels view The Prestige Collection as a complement to their commercial strategy for attracting luxury clientele.

With a prominent presence both nationally and internationally across 36 countries, The Prestige Collection shines in with four distinguished resorts: Baglioni Resort Maldives, Diamonds Athuruga Maldives Resort & Spa, Diamonds Thudufushi Maldives Resort & Spa, and Hideaway Beach Resort & Spa. Internationally, the collection boasts emblematic properties like Armani Dubai, Café Royal in London, The Pierre in New York, and Kappa Senses in Ubud, Bali, among others.

The collection categorises hotels into four distinctive categories, highlighting ideal places to disconnect, properties in vibrant urban settings, coastal options for those seeking serenity, and unique experiences for those seeking singularity.

Furthermore, this milestone coincides with the relaunch of its new experiential website platform. This platform offers users and industry professionals the opportunity to explore the collection in greater detail and drives qualified traffic to the official websites of member hotels.

Continue Reading

Business

Waste Management Corporation (WAMCO) Marks a Significant Step Towards Transforming Urban Waste Management

Published

on

Waste Management Corporation (WAMCO) marked a significant step towards plastic waste management with the adoption of dedicated vehicles handed over to boost this transformation of urban waste management supported by The Coca-Cola Foundation (TCCF) and the United Nations Development Programme (UNDP) in the Maldives.  

In March 2024, UNDP Maldives officially handed over a fleet of six vehicles to WAMCO, which included two electric vehicles (EVs), as part of an initiative aimed at enhancing waste management across the Greater Male’ Area (GMA). This acquisition, facilitated through the financial support of TCCF paves the way for a crucial advancement in bolstering PET collection efforts and tackling the challenge of plastic waste in the Maldives.

“This initiative marks a significant step towards boosting recycling rates and combating environmental pollution in the Maldives,” stated Pek Chuan Gan, Deputy Resident Representative of UNDP Maldives speaking at the handover ceremony. “Integrating electric vehicles into WAMCO’s fleet and improving PET recycling processes not only lowers carbon emissions but also pioneers renewable energy use in waste management. It’s a vital move for steering the Maldives towards a sustainable and renewable-powered future.”

The provision of electric vehicles marks a continuation of UNDP Maldives’ support to the Government’s vision to introduce renewable energy in key sectors such as waste management that significantly contribute to the country’s renewable energy transition ambition. By embracing clean energy solutions, such as electric vehicles in waste management practices, the Maldives can further reduce its carbon footprint and move closer to achieving its renewable energy goals.

“Utilizing eco-friendly vehicles is a pivotal change for WAMCO, signifying a major leap towards modernizing waste management in the Maldives,” remarked Mujthaba Jaleel, Managing Director, from WAMCO. “This collaboration highlights the shared commitment to environmental stewardship and the potential for such partnerships to catalyse meaningful progress in sustainability and about the positive impact these vehicles will have on our operations and the environment.”

Representatives from UNDP Maldives, WAMCO, and The Coca-Cola Foundation’s unified efforts towards a sustainable future. Photo courtesy: CIAO Advertising.

“Our commitment goes beyond just recycling; it’s about fostering a culture of sustainability,” remarked Saadia Madsbjerg, President, Coca‑Cola Foundation and VP Community Affairs. “By enhancing waste management in the Maldives, we aspire to set a benchmark for environmental stewardship.”

For The Coca-Cola Foundation, together with the stakeholders, the aim is to propel Maldives towards a future where plastic circularity is not just envisioned but actively pursued. By channelling resources and expertise into the heart of waste management, TCCF has made a sizeable contribution in enhancing and attracting investment to this crucial sector in the Maldives. This initiative is a testament to TCCF’s commitment to fostering sustainable practices and promoting the reuse and recycling of plastics, thereby reducing environmental impact, and paving the way for a circular economy.

The fleet handover event held on March 18, 2024, served as a celebration of collaboration in waste management. Representatives from UNDP Maldives, WAMCO, The Coca-Cola Foundation, government officials, and stakeholders came together to mark this significant step and reinforced their collective dedication to building a more sustainable future for the Maldives.

Continue Reading
Advertisement

Trending

Copyright all rights reserved by Maldives Promotion House 2023.