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.



Saudi Arabia, Syria Sign Joint Airline and Telecoms Deals

Officials pose after signing a framework agreement for developmental cooperation and the launch of 45 development initiatives between the Syrian Development Fund and Saudi Arabia's Development Committee at the People's Palace in Damascus, Syria, Saturday, Feb. 7, 2026. (AP)
Officials pose after signing a framework agreement for developmental cooperation and the launch of 45 development initiatives between the Syrian Development Fund and Saudi Arabia's Development Committee at the People's Palace in Damascus, Syria, Saturday, Feb. 7, 2026. (AP)
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Saudi Arabia, Syria Sign Joint Airline and Telecoms Deals

Officials pose after signing a framework agreement for developmental cooperation and the launch of 45 development initiatives between the Syrian Development Fund and Saudi Arabia's Development Committee at the People's Palace in Damascus, Syria, Saturday, Feb. 7, 2026. (AP)
Officials pose after signing a framework agreement for developmental cooperation and the launch of 45 development initiatives between the Syrian Development Fund and Saudi Arabia's Development Committee at the People's Palace in Damascus, Syria, Saturday, Feb. 7, 2026. (AP)

Syria and Saudi Arabia signed deals Saturday that include a joint airline and a $1-billion project to develop telecommunications, officials said, as Syria seeks to rebuild after years of war.

The new authorities in Damascus have worked to attract investment and have signed major agreements with several companies and governments.

Syrian Investment Authority chief Talal al-Hilali announced a series of deals including "a low-cost Syrian-Saudi airline aimed at strengthening regional and international air links".

The agreement also includes the development of a new international airport in the northern city of Aleppo, and redeveloping the existing facility.

Hilali also announced an agreement for a project called SilkLink to develop Syria's "telecommunications infrastructure and digital connectivity".

Syrian Telecommunications Minister Abdulsalam Haykal told the signing ceremony that the project would be implemented "with an investment of around $1 billion".

For decades, Syria was unable to secure significant investments because of Assad-era sanctions.

But the United States fully removed its remaining sanctions on Damascus late last year, paving the way for the full return of investments.

Syria and Saudi Arabia also inked an agreement on water desalination and development cooperation on Saturday.

At the ceremony, Saudi Investment Minister Khalid Al-Falih announced the launch of an investment fund for "major projects in Syria with the participation of the (Saudi) private sector".

The deals are part of "building a strategic partnership" between the two countries, he said.

Syria's Hilali said the agreements targeted "vital sectors that impact people's lives and form essential pillars for rebuilding the Syrian economy".

Syria has begun the mammoth task of trying to rebuild its shattered infrastructure and economy.

In July last year, Riyadh signed investment and partnership deals with Damascus valued at $6.4 billion to help rebuild the country's infrastructure, telecommunications and other major sectors.

A month later, Syria signed agreements worth more than $14 billion, including investments in Damascus airport and other transport and real estate projects.

This week, Syria signed a preliminary deal with US energy giant Chevron and Qatari firm Power International to explore for oil and gas offshore.


India’s Modi Lauds Interim Trade Pact After US Tariff Rollback

Indian Prime Minister Narendra Modi addresses the media before the budget session of Parliament at Parliament House in New Delhi, India, 29 January 2026. (EPA)
Indian Prime Minister Narendra Modi addresses the media before the budget session of Parliament at Parliament House in New Delhi, India, 29 January 2026. (EPA)
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India’s Modi Lauds Interim Trade Pact After US Tariff Rollback

Indian Prime Minister Narendra Modi addresses the media before the budget session of Parliament at Parliament House in New Delhi, India, 29 January 2026. (EPA)
Indian Prime Minister Narendra Modi addresses the media before the budget session of Parliament at Parliament House in New Delhi, India, 29 January 2026. (EPA)

Indian Prime Minister Narendra Modi on Saturday hailed an interim trade agreement with the United States, saying it would bolster global growth and deepen economic ties between the two countries.

The pact cuts US "reciprocal" duties on Indian products to 18 percent from 25 percent, and commits India to large purchases of US energy and industrial goods.

US President Donald Trump, while announcing the deal Tuesday, had said Modi promised to stop buying Russian oil over the war in Ukraine.

The deal eases months of tensions over India's oil purchases -- which Washington says fund a conflict it is trying to end -- and restores the close ties between Trump and the man he describes as "one of my greatest friends."

"Great news for India and USA!" Modi said on X on Saturday, praising US President Donald Trump's "personal commitment" to strengthening bilateral ties.

The agreement, he said, reflected "the growing depth, trust and dynamism" of their partnership.

Modi's remarks came hours after Trump issued an executive order scrapping an additional 25 percent levy imposed over New Delhi's purchases of Russian oil, in a step to implement the trade deal announced this week.

Modi, who has faced criticism at home about opening access of Indian agricultural markets to the United States and terms on oil imports, did not mention Russian oil in his statement.

"This framework will also strengthen resilient and trusted supply chains and contribute to global growth," he said.

It would also create fresh opportunities for Indian farmers, entrepreneurs and fishermen under the "Make in India" initiative.

In a separate statement, Commerce Minister Piyush Goyal said the pact would "open a $30 trillion market for Indian exporters".

Goyal also said the deal protects India's sensitive agricultural and dairy products, including maize, wheat, rice, soya, poultry and milk.

Other terms of the agreement include the removal of tariffs on certain aircraft and parts, according to a separate joint statement released Friday by the White House.

The statement added that India intends to purchase $500 billion of US energy products, aircraft and parts, precious metals, tech products and coking coal over the next five years.

The shift marks a significant reduction in US tariffs on Indian products, down from a rate of 50 percent late last year.

Washington and New Delhi are expected to sign a formal trade deal in March.


Gold Bounces Back on Softer Dollar, US-Iran Concerns; Silver Rebounds

Gold and silver bars are stacked in the safe deposit boxes room of the Pro Aurum gold house in Munich, Germany, January 10, 2025. REUTERS/Angelika Warmuth
Gold and silver bars are stacked in the safe deposit boxes room of the Pro Aurum gold house in Munich, Germany, January 10, 2025. REUTERS/Angelika Warmuth
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Gold Bounces Back on Softer Dollar, US-Iran Concerns; Silver Rebounds

Gold and silver bars are stacked in the safe deposit boxes room of the Pro Aurum gold house in Munich, Germany, January 10, 2025. REUTERS/Angelika Warmuth
Gold and silver bars are stacked in the safe deposit boxes room of the Pro Aurum gold house in Munich, Germany, January 10, 2025. REUTERS/Angelika Warmuth

Gold rebounded on Friday and was set for a weekly gain, helped by bargain hunting, a slightly weaker dollar and lingering concerns over US-Iran talks in Oman, while silver recovered from a 1-1/2-month low.

Spot gold rose 3.1% to $4,916.98 per ounce by 09:31 a.m. ET (1431 GMT), recouping losses posted during a volatile Asia session that followed a fall of 3.9% on Thursday. Bullion was headed for a weekly gain of about 1.3%.

US gold futures for April delivery gained 1% to $4,939.70 per ounce.

The US dollar index fell 0.3%, making greenback-priced bullion cheaper for the overseas buyers.

"The gold market is seeing perceived bargain hunting from bullish traders," said Jim Wyckoff, senior analyst at Kitco Metals.

Iran and the US started high-stakes negotiations via Omani mediation on Friday to try to overcome sharp differences over Tehran's nuclear program.

Wyckoff said gold's rebound lacks momentum and the metal is unlikely to break records without a major geopolitical trigger.

Gold, a traditional safe haven, does well in times of geopolitical and economic uncertainty.

Spot silver rose 5.3% to $74.98 an ounce after dipping below $65 earlier, but was still headed for its biggest weekly drop since 2011, down over 10.6%, following steep losses last week as well.

"What we're seeing in silver is huge speculation on the long side," said Wyckoff, adding that after years in a boom cycle, gold and silver now appear to be entering a typical commodity bust phase.

CME Group raised margin requirements for gold and silver futures for a third time in two weeks on Thursday to curb risks from heightened market volatility.

Spot platinum added 3.2% to $2,052 per ounce, while palladium gained 4.9% to $1,695.18. Both were down for the week.