Lifting Off? Sudden Travel Surge Tests US Airlines

US airlines are adjusting to a sudden spike in booking from customers in light of the pent-up demand - AFP
US airlines are adjusting to a sudden spike in booking from customers in light of the pent-up demand - AFP
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Lifting Off? Sudden Travel Surge Tests US Airlines

US airlines are adjusting to a sudden spike in booking from customers in light of the pent-up demand - AFP
US airlines are adjusting to a sudden spike in booking from customers in light of the pent-up demand - AFP

US airlines are scrambling to ramp back up to meet soaring travel demand that has transformed America's airports from cavernous to crowded almost overnight.

The surge in pent-up demand is exposing immediate staffing shortfalls in the aviation workforce, as well as medium-term labor challenges following an exodus of experienced workers during the downturn.

The issues came to a head over the weekend when American Airlines canceled 400 flights and said it would cut one percent of its flights in July to better manage an "incredibly quick ramp-up of customer demand."

While American was more aggressive than rivals in adding capacity, all major carriers face challenges in the sudden rush, analysts said, according to AFP.

"They've had so many planes just waiting in hangars or runways that weren't being used... there's a lot of maintenance," said Ian Gendler, executive director of research at Value Line. "It's not an overnight thing."

The surge in bookings and the economic recovery are "fantastic things for the airlines, but they have to execute," Gendler said.

Activity at US airports bottomed out in April 2020, when there were several days with fewer than 100,000 passengers nationwide, US data show. Volumes recovered somewhat from that nadir over the next months, but airports remained strikingly low-trafficked until vaccinations became widespread.

Chris Riggins, a Delta pilot and a spokesman for the Air Line Pilots Association, took note this spring when an airport garbage bin was overflowing and people had placed trash on top.

"Right now, you couldn't tell the difference from summers before," he said.

As bookings have risen, major carriers have recalled their staffs and unveiled recruitment drives.

Delta announced this week plans to hire 1,000 new pilots by next summer, while American is "actively hiring" in several groups, including reservations, airport customers service and maintenance, an American spokesperson said.

Some of the workers are needed to backfill positions from staff who took early retirement packages last year when carriers were looking to cut costs to survive the pandemic.

Delta is also in the midst of a pilot training push aimed at more than 1,700 pilots who did not fly during the pandemic, Riggins said. Another large group of pilots who will need training are pilots who flew during Covid-19 but are now shifting to new planes, replacing some 1,800 pilots who recently retired.

"Those pilots need to be replaced and we need to rehire, so I think you're going to see training like this for the forseeable future," Riggins said.

In the near-term, Riggins expects the aviation industry to struggle to find enough staff to clean airports, cater for airlines or manage concessions at airports. Fast-food restaurants may only be able to serve for limited hours, he said.

Gary Peterson, whose union represents mechanics, flights attendants, luggage handlers and other non-pilot aviation staff, said shortfalls will be exacerbated by the more extensive on-boarding requirements at secured operations like airports.

It normally takes about 30 days to take fingerprints and conduct a background check, but that timeframe is being dragged out because some government agencies are themselves short-staffed in some cases, or slowed by social distancing requirements still in place, said Peterson, international vice president at Transport Workers Union (TWU) and a certified mechanic for American Airlines.

Prior to Covid-19, aviation companies were struggling to recruit enough pilots, mechanics and dispatchers. Now those labor problem areas remain, but the industry is also contending with competition from other sectors for roles such as baggage handlers.

"Why would you work in sweltering heat in Dallas for say $15 an hour when you could go up the street at Amazon, work in an air conditioned building and make the same amount of money?" asked Peterson.

Recruitment is also getting harder for flight attendants following assaults and other abusive behaviors on board from customers angry over mask requirements and other protocols.

Peterson thinks most tourists will reach their destinations and expects a gradual improvement over the course of the summer. But there will be issues.

"They're going to see problems throughout the summer," he predicted.



Indian Refiners Avoid Russian Oil in Push for US Trade Deal

An employee walks inside the premises of an oil refinery of Essar Oil in Vadinar in the western state of Gujarat, India, October 4, 2016. REUTERS/Amit Dave/File Photo
An employee walks inside the premises of an oil refinery of Essar Oil in Vadinar in the western state of Gujarat, India, October 4, 2016. REUTERS/Amit Dave/File Photo
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Indian Refiners Avoid Russian Oil in Push for US Trade Deal

An employee walks inside the premises of an oil refinery of Essar Oil in Vadinar in the western state of Gujarat, India, October 4, 2016. REUTERS/Amit Dave/File Photo
An employee walks inside the premises of an oil refinery of Essar Oil in Vadinar in the western state of Gujarat, India, October 4, 2016. REUTERS/Amit Dave/File Photo

Indian refiners are avoiding Russian oil purchases for delivery in April and are expected to stay away from such trades for longer, refining and trade sources said, a move that could help New Delhi seal a trade pact with Washington, according to Reuters.

The US and India moved closer to a trade pact on Friday, announcing a framework for a deal they hope to conclude by March that would lower tariffs and deepen economic cooperation.

Indian Oil, Bharat Petroleum and Reliance Industries are not accepting offers from traders for Russian oil loading in March and April, said a trader who approached the refiners.

These refiners, however, had already scheduled some deliveries of Russian oil in March, refining sources said. Most other refiners have stopped buying Russian crude.

A foreign ministry spokesperson said: “Diversifying our energy sourcing in keeping with objective market conditions and evolving international dynamics is at the core of our strategy” to ensure energy security for the world's most-populous nation.

Although a US-India statement on the trade framework did not mention Russian oil, President Donald Trump rescinded his 25% tariffs on Indian goods, imposed over Russian oil purchases, because, he said, New Delhi had “committed to stop directly or indirectly” importing Russian oil.

New Delhi has not announced plans to halt Russian oil imports.

India became the top buyer of discounted Russian seaborne crude after Russia invaded Ukraine in 2022, spurring a backlash from Western nations that had targeted Russia's energy sector with sanctions aimed at curtailing Moscow's revenue and making it harder to fund the war.

One regular Indian buyer is Russia-backed private refiner Nayara, which relies solely on Russian oil for its 400,000-barrel-per-day refinery. Sources said Nayara may be allowed to keep buying Russian oil because other crude sellers pulled back after the European Union sanctioned the refiner in July.

Nayara also does not plan to import Russian crude in April due to a month-long refinery maintenance shutdown, a source familiar with its operations said.

Nayara did not respond to an email seeking comment.

Indian refiners may change their plan and place orders for Russian oil only if advised by the government, sources said.

Trump's order said US officials would monitor and recommend reinstating the tariffs if India resumed oil procurement from Russia.

Sources said last month that India was preparing to cut Russian oil imports below 1 million bpd by March, with volumes eventually falling to 500,000–600,000 bpd, compared with an average 1.7 million bpd last year. India's Russian oil imports topped 2 million bpd in mid-2025.

The intake of Russian oil by India, the world's third-biggest oil consumer and importer, declined to its lowest level in two years in December, data from trade and industry sources show.

 


IMF and Arab Monetary Fund Sign MoU to Enhance Cooperation

The MoU was signed by IMF Managing Director Dr. Kristalina Georgieva and AMF Director General Dr. Fahad Alturki - SPA
The MoU was signed by IMF Managing Director Dr. Kristalina Georgieva and AMF Director General Dr. Fahad Alturki - SPA
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IMF and Arab Monetary Fund Sign MoU to Enhance Cooperation

The MoU was signed by IMF Managing Director Dr. Kristalina Georgieva and AMF Director General Dr. Fahad Alturki - SPA
The MoU was signed by IMF Managing Director Dr. Kristalina Georgieva and AMF Director General Dr. Fahad Alturki - SPA

The International Monetary Fund (IMF) and the Arab Monetary Fund (AMF) signed a memorandum of understanding (MoU) on the sidelines of the AlUla Conference on Emerging Market Economies (EME) to enhance cooperation between the two institutions.

The MoU was signed by IMF Managing Director Dr. Kristalina Georgieva and AMF Director General Dr. Fahad Alturki, SPA reported.

The agreement aims to strengthen coordination in economic and financial policy areas, including surveillance and lending activities, data and analytical exchange, capacity building, and the provision of technical assistance, in support of regional financial and economic stability.

Both sides affirmed that the MoU represents an important step toward deepening their strategic partnership and strengthening the regional financial safety net, serving member countries and enhancing their ability to address economic challenges.


Saudi Chambers Federation Announces First Saudi-Kuwaiti Business Council

File photo of the Saudi flag/AAWSAT
File photo of the Saudi flag/AAWSAT
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Saudi Chambers Federation Announces First Saudi-Kuwaiti Business Council

File photo of the Saudi flag/AAWSAT
File photo of the Saudi flag/AAWSAT

The Federation of Saudi Chambers announced the formation of the first joint Saudi-Kuwaiti Business Council for its inaugural term (1447–1451 AH) and the election of Salman bin Hassan Al-Oqayel as its chairman.

Al-Oqayel said the council’s formation marks a pivotal milestone in economic relations between Saudi Arabia and Kuwait, reflecting a practical approach to enabling the business sectors in both countries to capitalize on promising investment opportunities and strengthen bilateral trade and investment partnerships, SPA reported.

He noted that trade between Saudi Arabia and Kuwait reached approximately SAR9.5 billion by the end of November 2025, including SAR8 billion in Saudi exports and SAR1.5 billion in Kuwaiti imports.