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KLM CEO reveals Airline gears up to resume most International routes as vaccine rollouts are set to boost travel

LKM Royal Dutch Airlines said it prospects to resume most of its international flight routes upto 95% frequency and capacity this year as Covid- 19 vaccine rollout increases a ray of hope for the pandemic crippled travel industry since 2020.

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The Airlines Chief Executive Officer Pieter Elbers, noted  that KLM plans to add Riyadh – Saudi Arabian capital to its flight chart.

Elbers says, ‘’We do expect to bounce back in roughly 90-97% of all the destinations we were flying to prior to Covid-19 outbreak’’. Although, ‘’We must say there’s going to be least capacity, so the frequency levels will significantly lower down as compared to the situation in the year 2019’’.

However, the speed and extent of the resumption will vary region by region depending on vaccination rates.

‘’Clearly, we do expect that the Europe – Asia part will be slower than some of the other recoveries’’

‘’Currently, the United States of America’s domestic air travel market has shown strong signs of recovery amid rising vaccination rates’’, he adds

Europe should follow suit as inoculation levels rise, improving the prospects for transatlantic travel too.

“Clearly, we do expect that the Europe-Asia part will be slower than some of the other recoveries given the very tight regimes in some of the countries when it comes to quarantines or other measures for inbound travel,” said Elbers.

Middle East expansion

Meanwhile in the Middle East, broadly successful vaccine rollouts will see the company commence its new Riyadh route this summer, after postponing those plans last year.

“The Middle East and many of the countries in the Middle East have done a big step forward in terms of vaccination levels,” Elbers said. “That’s why indeed we’re expanding and we’re adding a destination like Riyadh in the Middle East, and we’re seeing travel come back to more reasonable numbers than we have seen before.”

The comments come a day after the UAE carrier Emirates reported a $5.5 billion annual loss — its first in three decades — prompting an additional $1.1 billion bailout from the Dubai government.

Last month, Air France- KLM reported a first-quarter net loss of $1.8 billion, which Elbers described as “worse than anticipated.”

He said he wouldn’t rule out the possibility of further government support should the industry be hit by more Covid-19 flare-ups. However, Elbers said KLM’s existing $4.1 billion in loans and facilities should provide the airline with a “solid foundation going forward.”

“We can see optimistic signs going forward and, in fact, we try to make that balance in terms of still a lot of work to do on cost-cutting, on restructuring, but yet look a bit more positive to the future,” he said.

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