We start each day’s update with this message from DFS Group when the retailer reopened its stores in Macau on 20 February after a 13-day closure.
Published in Chinese, it translates as:
No winter can’t be passed
No spring will not come
FOR UPDATES FROM 25 MAY ONWARDS CLICK HERE.
24 May
| In summary: Latest developments *Brazil overtakes Russia as the second worst-hit country in total case numbers (347,398) after the US. * The National Health Commission of the People’s Republic of China reports just five cases across the whole of Greater China for Friday and Saturday combined. * India posts highly daily increase in new cases for second consecutive day. 6,767 new COVID-19 infections are confirmed, bringing the total to 131,868 and 3,867 deaths. The alarming spike comes as domestic flights resume this coming week. * Japan posts just 28 new coronavirus cases but 12 deaths. Only two new infections in Tokyo, the lowest tally since the state of emergency was declared on 7 April. * Mexico sees a continued surge in new infections with 3,328 new daily cases, the second consecutive record daily increase. Mexico has reported 65,856 COVID-19 cases and 7,179 deaths, according to Johns Hopkins University. * South Korea continues to see new case numbers hover in the twenties. * US case toll passes 1.6 million (see below). |
International
Greater China
South Korea
23 May
International
South Korea
Greater China
22 May
Australia
Sydney Airport passenger traffic reached just 92,000 in April, down -97.5% year-on-year. That included 43,000 international passengers (-96.9%) and 49,000 domestic (-97.9%).
The airport company said: “We expect the downturn in passenger traffic to persist until government travel restrictions are eased.”
International
South Korea
Greater China
21 May
South Korea
Greater China
International
20 May
| In summary: Latest developments * Brazil records over 17,400 new cases, the greatest single-day spike during the pandemic * National Health Commission of the People’s Republic of China reports just five cases across the whole of Greater China * In France, Groupe ADP passenger traffic falls by -99% year-on-year in April* *Singapore to reopen gradually in three phases from 1 June * South Korea’s new case toll soars to 32, the highest in nine days (story to follow) * US case toll passes 1.5 million |
International
Travel restaurateur Autogrill Group has reported on the sharp impact of the COVID-19 pandemic on its business in the first four months of 2020. Revenue in the period reached €963 million, down by -33.9% year-on-year at current exchange rates (-35% at constant rates). Revenue in the month of April alone fell by -88% at current exchange rates, with 80% of stores closed.
EBITDA (under the IFRS16 accounting method) of €50.8 million for the period was sharply down on €178.6 million in the same period in 2019) and EBIT (IFRS16) -€157.7 million for the period compared to -€8.8 million a year ago.
Of early trading in May, it highlighted some signs of recovery in Italy and Rest of Europe and particularly on motorways, after the partial lifting of lockdown measures in the first half of the month.
Full story here.
Ireland
DAA, which operates Dublin and Cork airports, and is parent company of travel retailer Aer Rianta International, said it plans to “right-size” the business in the face of COVID-19. It anticipates a “significant operating loss” in 2020, “with continued uncertainty in the medium term”.
DAA said that passenger traffic at Dublin and Cork airports next year could be as low as about 21 million passengers, compared to 35.5 million passengers in 2019. In April passenger traffic fell by -99% year-on-year.
Full story here.
Singapore
South Korea
International
Greater China
19 May
France
Groupe ADP passenger traffic fell by -99% year-on-year in April to just 300,000 across the network. Paris Aéroport traffic decreased by -98.6% to 100,000 passengers. As reported, at Paris Charles de Gaulle, only terminals 2A, 2C, 2E and 2F were open in the month while Paris Orly remains closed since 1 April.
Passenger traffic at TAV Airports, 46.1%-owned by Groupe ADP, decreased by -99% in April and is down -70.5% since the beginning of the year.
Passenger traffic at Santiago de Chile Airport, 45%-owned by Groupe ADP, fell by -95.4% in April and has by -30.2% in the first four months. At Amman Airport, 51%-owned by Groupe ADP, travel numbers slipped by -99.1% in April and by -44.1% since the beginning of the year.
Passenger traffic at GMR Airports, 24.99%-owned by Groupe ADP, slumped by -99.7% in April compared to April 2019.
International
South Korea
Greater China
18 May
International
Greater China
South Korea
17 May
Spain
The Spanish death toll fell to 87 over the past 24 hours – the first total under 100 since the lockdown began.
Thailand
The government has extended its passenger flight ban for another month to 30 June in an effort to contain the COVID-19 outbreak. No passenger flights originating outside the country may land at Thai airports until June 30.
The Civil Aviation Authority of Thailand issued the announcement (below) on its website yesterday.
The Thai authorities have worked rigorously to limit the disease. No new coronavirus infections nor deaths were reported on Saturday, leaving the countrywide tally at 3,025 cases and just 56 deaths. That ranks Thailand 70th in terms of global total case numbers and 72nd in the deaths tally.
That spells encouraging news for a relatively early return of Chinese tourism, so critical to the Thai travel retail sector.
From today, shopping malls, community malls and department stores are among businesses allowed to reopen fully after more than a month of a shutdown, as the government implemented the next phase of economic reopening. King Power International, which has also developed a strong ecommerce business, will reopen two of its three downtown stores in Bangkok tomorrow (in King Power Mahanakhon, Bangkok’s tallest building, and King Power Rangnam), and one in Phuket.
Greater China
South Korea
International
16 May
Hong Kong
Cathay Pacific and Cathay Dragon carried just 13,729 passengers in April, a decrease of -99.6% compared to April 2019. The Cathay Pacific Group airlines reduced capacity by -97% “in response to significantly reduced demand as well as travel restrictions and quarantine requirements in place in Hong Kong and other markets”.
Although it expects to add some capacity, this is expected to be limited at least until the end of June.
Cathay Pacific Group Chief Customer and Commercial Officer Ronald Lam said: “The COVID-19 pandemic continues to impact us in an unprecedented way. Year-to-date up to April, we made an unaudited loss of HK$4.5 billion at the full-service airline level (Cathay Pacific and Cathay Dragon) and the financial outlook continues to be very bleak for the coming few months at least.
“We operated only a bare skeleton passenger flight schedule serving just 14 destinations in April. Passenger demand continued to fall during the month and we carried fewer than 500 passengers per day only. The ban on transit traffic through Hong Kong together with minimal demand for outbound travel meant that the majority of our very limited traffic came from inbound travellers, notably from North America and the UK.
On the outlook, Lam said: “It is widely expected that international travel demand will only return to pre COVID-19 levels in a few years.
“As Hong Kong’s home carriers, we do not have the benefit of a domestic passenger network as a buffer. We already announced that we will continue to operate a minimal schedule over the next two months. Although it is our intention to slightly increase our passenger flight capacity from 3% in May to 5% in June, these are still subject to a potential relaxation in government health measures.
“At this stage, we still see no immediate signs of improvement. We expect that our average daily passenger numbers will remain at around 500 in May, and that business and leisure travel will remain severely impacted for the foreseeable future. Overall, we do not anticipate we will see a meaningful recovery for an extended period.”
South Korea
International
Greater China
15 May
International
South Korea
Greater China
14 May
Thailand
Airports of Thailand today reported figures for its first half and second quarter, with non-aeronautical revenues falling by -30.22% year-on-year in the three months to 31 March, hitting Bt5,159.43 million (US$160.5 million). Within this, concession revenues fell by -36.4% to Bt2,977 million (US$92.6 million).
The key reason was the sharp (-30.3%) decrease in the number of passengers due to the impact of COVID-19.
Full story here.
UK
WHSmith today said that revenue from its Travel division fell by -91% year-on-year in April, with total group revenue down by -85%. The company provided a trading update as it reported first-half results to 29 February.
Commenting on potential recovery scenarios, WHSmith said: “In Air, we expect a gradual improvement in passenger numbers from Autumn 2020; initially led by an increase in domestic travellers, particularly in the US where 80% of passengers are domestic, followed by regional, international and intercontinental passengers.”
Full story here.
UAE
“Until a medical solution is found, the industry will rely on bilateral agreements that enable the resumption of services.” Dubai Airports CEO Paul Griffiths, one of the most-respected figures in aviation, paints a bleak short to mid-term picture of recovery prospects.
Click here for the full story.
International
South Korea
Greater China
13 May
Japan/International
Shiseido Travel Retail posted net sales of ¥27.8 billion (US$255.2 million) in the first quarter of its fiscal year, ending 31 March 2020, a decline of -1.6% at foreign exchange-neutral rates (-3.1% reported). The figures include travel retail in Japan and overseas.
The company said that travel retail had begun the year strongly in January (following anoutstanding 2019), with Asia showing a +20% surge due to strong demand in China and South Korea, but the impact of lockdowns in many countries meant sales fell sharply from February onwards. In particular, the -90% drop in Chinese outbound travellers in March was a key contributing factor.
Full story here.
South Korea
Department store to duty free retailer Shinsegae posted weaker than expected first-quarter results, driven by the impact of COVID-19 on travel retail results.
Shinsegae Duty Free’s gross sales slumped -31.0% year-on-year to KW576 billion, with downtown sales declining by -21% and a stricken airport sector by -40%.
Full story here.
South Korea
Greater China
Chinese President Xi Jinping has encouraged the country’s nurses to step up efforts to promote the Healthy China initiative and maintain the security of public health globally.
China Daily reported that Xi sent his greetings to nurses across the country ahead of International Nurses Day on 12 May, and complimented them for their courageous fight against the novel coronavirus disease in China and overseas.
International
12 May
Europe
Airports Council International (ACI) Europe today revealed that the region’s airports posted a -98.6% drop in passenger traffic year-on-year in April. The European network of 500+ airports welcomed only 2.8 million passengers during April, 202 million fewer than a year earlier.
More on this story here.
France/International
Tax Free World Association today announced the cancellation of the TFWA World Exhibition & Conference, scheduled for 27 September to 2 October, in light of the COVID-19 crisis.
Having announced plans to proceed with the show on 17 April, the TFWA Board and Management Committee took into account the continuing uncertainty surrounding the travel and health situation, as well as the worldwide fall in industry activity, in taking its decision.
Full story here.
Singapore
Changi Airport is to suspend operations at Terminal 4 from 16 May, in a further consolidation of activity as traffic falls sharply due to the COVID-19 outbreak. The airport company had already halted operations at Terminal 2 for 18 months on 1 May.
Changi Airport also reported April traffic results: it served 25,200 passengers across its four terminals in the month, down by -99.5% year-on-year.
For the full story, click here.
International
Dufry this morning laid bare the drastic impact of the COVID-19 crisis on its business, revealing in a trading update to its first-quarter results that sales had plummeted -94.1% year-on-year in April. However, it also unveiled a coherent plan, driven out of crisis, to shore up liquidity and to drive recovery on a location-by-location basis as the situation improves.
Full story here.
Greater China
South Korea
International
11 May
International
UK
The UK Travel Retail Forum has said it has “serious concerns” about the government’s plans to introduce a 14-day quarantine for inbound travellers, and the impact it will have on the capacity of the travel industry to restart. (Scroll down for a video of Prime Minister Boris Johnson announcing the measure.)
Chair Francois Bourienne said: “While UKTRF firmly supports a science-led approach to all measures to combat COVID-19, we believe there may be more effective risk-based approaches that the government is not considering. It is also alarming that the quarantine period has been announced without meaningful consultation and engagement with the travel sector to ensure the planned rules are understood, workable in the short term, and clear in their scope and duration.”
More on this story here.
Colombia
As airlines around the world seek financial support to allow them to survive the COVID-19 crisis, one of the largest carriers in Latin America files for bankruptcy protection.
Yesterday, Colombian airline group Avianca Holdings filed voluntary petitions under Chapter 11 of the United States Bankruptcy Code, saying the move was “necessitated by the unforeseeable impact of the COVID-19 pandemic”.
For more, click here.
International
New research from the UN World Tourism Organization shows that 100% of global destinations have restrictions on travel in place, and 72% have completely closed their borders to international visitors as a result of the COVID-19 outbreak.
The agency said that, out of all 217 destinations worldwide, 156 (72%) have placed a complete stop on international tourism (data as of 27 April). In 25% of destinations, restrictions have been in place for at least three months, while in 40% of destinations, restrictions were introduced at least two months ago. Crucially, no destination has so far lifted or eased travel restrictions.
For more, click here.
UK
London Heathrow Airport passenger traffic fell by -97% year-on-year in April. The UK hub supported essential travel for just 200,000 people, the number it would usually handle in one day. Demand is expected to remain weak until governments lift lockdowns, said Heathrow.
As the UK government announced plans to impose a 14-day quarantine on visitors who arrive by air, Heathrow said it supports the aim to avoid a new wave of infections, “even though it will effectively close borders temporarily”. But it called for a “roadmap” for how government plans to re-open borders once it is safe to do so.
Full story here.
South Korea
China
10 May
UK
“To prevent reinfection from abroad, I am serving notice that it will soon be the time – with transmission significantly lower – to impose quarantine [believed to be 14-day -Ed] on people coming into this country by air.” – UK Prime Minister Boris Johnson during his address to the nation tonight.
International
South Korea
China
9 May
International
“I think what we’re seeing is a careful, measured return to those kind of normal activities of work and school, especially if they’re done with density reduction, physical distancing and hygiene in place seem to be very prudent and practical. Where we’re going to maybe have to accept a little bit more time is going to be around mass gatherings – things like large-scale gatherings and concerts.” World Health Organization Executive Director Dr. Mike Ryan’s words to a media briefing on Friday underlined the challenges faced by the world at large and particularly travel-related sectors.
“This is the time when people gather en mass, we go to big events, and it’s going to be much more difficult to make those perfectly safe”
[Click on the icon to watch Dr Mike Ryan via The Guardian’s YouTube Channel]
“We’re coming into the summertime in Europe, and North America and other places in Asia. And this is the time when people gather en mass, we go to big events, and it’s going to be much more difficult to make those perfectly safe. There is a path out, but we must remain ever vigilant. And we may have to have a significant alteration to our lifestyles until we get to a point where we have an effective vaccine and effective treatments.
“This is a big challenge. And we’re not through it yet in many countries. And as some countries come out of lockdown, and come out of these measures, they can offer hope to communities who are entering into epidemic situations and [who can] learn lessons from what everyone has done, transfer resources, and help other countries to fight the fight they have to fight.
“In the end of this… through solidarity we will win the fight and nobody is safe until everybody is safe.”
Greater China
South Korea
International
US
The COVID-19 crisis made its impact felt at Orlando International Airport (MCO) in March with a 47% year-on-year drop in traffic. International traffic declined -53.61% to 302,867 while domestic volume fell -46.47% to 2,205,382.
NOTE: For earlier updates tracking back to mid-January, click here.
