With the coronavirus pandemic putting a massive dent in travel demand, airlines in the UAE are slashing fares to stimulate sales for the summer, an important season for the air transport industry.

Carriers around the world have been clobbered by strict precautionary measures that various jurisdictions have rolled out in a bid to curb COVID-19 infections last year.

In the UAE, demand started to increase during the last quarter of 2020, but as travel restrictions are back, many airlines are again struggling to fill seats.

The latest to announce discounts, Etihad Airways said on Thursday that travellers can now book a holiday in Seychelles for less, with roundtrip economy fares selling for just 995 dirhams ($270). That’s roughly a third of the normal summer fare. Flights to the Maldives are also up for grabs for 1,995 dirhams.

Etihad’s special rates are available until March 31 and can apply to flights any time until June 30, 2021.

Budget carrier Flydubai also announced earlier a promotional campaign, enticing travellers with special return fares to select destinations starting from 755 dirhams.

Negative outlook

Besides the discounted seat fares, airlines have tailored some holiday packages. At Flydubai, packages to Africa, Central Asia, Europe and subcontinent, as well as the Middle East, can cost from as little as 1,899 dirhams per person.

Both Etihad and Flydubai continue to gradually restart flights in various destinations across their global networks.

The International Air Transport Association (IATA) said this month that the outlook for airlines is expected to worsen before a recovery takes hold, in view of the latest round of COVID-19 restrictions.

In January, global passenger traffic fell 72 percent compared to the same period in 2019. That was worse than the 69.7 percent year-over-year decline recorded in December 2020.

“The airlines are facing a really tough start to the year for passenger business, which is where the majority of revenues come from… [The situation] will get worse before it will improve,” Brian Pearce, chief economist of IATA, had said.

(Reporting by Cleofe Maceda; editing by Seban Scaria)

Cleofe.maceda@refinitiv.com

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