Air travel continued to recover in May, with international travel growing more than fourfold, as a number of routes exceeded pre-Covid-19 levels, according to the International Air Travel Association (Iata).
Total air traffic in the month — measured in revenue passenger kilometres (RPKs) — rose more than 83 per cent compared with the same month last year, largely driven by a 326 per cent rise in international travel, bringing global traffic to almost 69 per cent of pre-Covid-19 levels, Iata said in its monthly market analysis released on Tuesday.
Domestic traffic, meanwhile, was up just 0.2 per cent from May 2021, with significant improvements in many markets cancelled out by a 73 per cent decline in China amid continued Covid-related restrictions.
Domestic air traffic levels were at more than three quarters of May 2019's levels, the industry body said, adding that year-to-date domestic traffic was up more than 16 per cent, while international traffic surged 276 per cent.
Aviation was among the industries hardest-hit by the pandemic, which had a domino effect on tourism, hospitality and supply chains. However, the sector is making a gradual recovery.
Many major international routes — particularly those within Europe, the Middle East and North America — are already surpassing pre-pandemic levels owing to the necessity of travel, said Iata's Director General Willie Walsh.
“The travel recovery continues to gather momentum. People need to travel. And when governments remove Covid-19 restrictions, they do. Completely removing all Covid-19 restrictions is the way forward,” he said.
Iata noted that it had returned to year-on-year comparisons, instead of comparing to 2019 (the year the pandemic started), except for in certain areas.
“Owing to the low traffic base in 2021, some markets will show very high year-on-year growth rates, even if the size of these markets is still significantly smaller than they were in 2019,” Iata said.
Air traffic in the Asia-Pacific and Europe both surged more than fivefold, with the former registering significant growth in the past four months and substantially above April's fourfold increase.
Recovery in the Asia-Pacific, where capacity more than doubled, was driven by the lifting of Covid-19 restrictions in most markets.
China, however, was the drag, because its “continuing zero-Covid policy is out-of-step with the rest of the world and it shows in the dramatically slower recovery of China-related travel”, Mr Walsh said.
Capacity in Europe was up more than threefold, with the impact of Russia's military offensive in Ukraine limited to only the areas directly affected by the conflict, Iata said.
Middle East airline traffic surged more than fourfold in May, with capacity more than doubling. The progressive reopening of Asian markets is boosting traffic through Gulf travel hubs such as Abu Dhabi and Dubai.
Carriers in North America and Latin America rose in the threefold range, with capacity in both more than doubling. African airline traffic more than doubled, with capacity up three quarters.
Despite the industry's continued improvement, Mr Walsh called for more co-operation between the industry and governments.
“In the longer term, governments must improve their understanding of how aviation operates and work more closely with airports and airlines,” he said.
“Having created so much uncertainty with knee-jerk Covid-19 policy flip-flops and avoiding most opportunities to work in unison based on global standards, their actions did little to enable a smooth ramping-up of activity.”
Mr Walsh also warned this week that the high price of oil will “without doubt” result in more expensive airline tickets, as the commodity is the single biggest element of an airline’s cost base.
Meanwhile, air cargo traffic in May declined 8.3 per cent, but was still an improvement after April's 9.1 per cent drop, Iata said.
This was attributed to the easing of restrictions related to the Omicron variant of Covid-19 in China. On a seasonally-adjusted basis, air freight posted 0.3 per cent growth after two months of decline.
“The return of Asian production as Covid-19 measures eased, particularly in China, will support demand for air cargo,” Mr Walsh said.
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Brief scoreline:
Toss: South Africa, elected to bowl first
England (311-8): Stokes 89, Morgan 57, Roy 54, Root 51; Ngidi 3-66
South Africa (207): De Kock 68, Van der Dussen 50; Archer 3-27, Stokes 2-12
Who is Mohammed Al Halbousi?
The new speaker of Iraq’s parliament Mohammed Al Halbousi is the youngest person ever to serve in the role.
The 37-year-old was born in Al Garmah in Anbar and studied civil engineering in Baghdad before going into business. His development company Al Hadeed undertook reconstruction contracts rebuilding parts of Fallujah’s infrastructure.
He entered parliament in 2014 and served as a member of the human rights and finance committees until 2017. In August last year he was appointed governor of Anbar, a role in which he has struggled to secure funding to provide services in the war-damaged province and to secure the withdrawal of Shia militias. He relinquished the post when he was sworn in as a member of parliament on September 3.
He is a member of the Al Hal Sunni-based political party and the Sunni-led Coalition of Iraqi Forces, which is Iraq’s largest Sunni alliance with 37 seats from the May 12 election.
He maintains good relations with former Prime Minister Nouri Al Maliki’s State of Law Coaliton, Hadi Al Amiri’s Badr Organisation and Iranian officials.
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Pharaoh's curse
British aristocrat Lord Carnarvon, who funded the expedition to find the Tutankhamun tomb, died in a Cairo hotel four months after the crypt was opened.
He had been in poor health for many years after a car crash, and a mosquito bite made worse by a shaving cut led to blood poisoning and pneumonia.
Reports at the time said Lord Carnarvon suffered from “pain as the inflammation affected the nasal passages and eyes”.
Decades later, scientists contended he had died of aspergillosis after inhaling spores of the fungus aspergillus in the tomb, which can lie dormant for months. The fact several others who entered were also found dead withiin a short time led to the myth of the curse.
What can victims do?
Always use only regulated platforms
Stop all transactions and communication on suspicion
Save all evidence (screenshots, chat logs, transaction IDs)
Report to local authorities
Warn others to prevent further harm
Courtesy: Crystal Intelligence
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UPI facts
More than 2.2 million Indian tourists arrived in UAE in 2023
More than 3.5 million Indians reside in UAE
Indian tourists can make purchases in UAE using rupee accounts in India through QR-code-based UPI real-time payment systems
Indian residents in UAE can use their non-resident NRO and NRE accounts held in Indian banks linked to a UAE mobile number for UPI transactions
Company%20Profile
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Avatar: Fire and Ash
Director: James Cameron
Starring: Sam Worthington, Sigourney Weaver, Zoe Saldana
Rating: 4.5/5
Company profile
Name: Back to Games and Boardgame Space
Started: Back to Games (2015); Boardgame Space (Mark Azzam became co-founder in 2017)
Founder: Back to Games (Mr Azzam); Boardgame Space (Mr Azzam and Feras Al Bastaki)
Based: Dubai and Abu Dhabi
Industry: Back to Games (retail); Boardgame Space (wholesale and distribution)
Funding: Back to Games: self-funded by Mr Azzam with Dh1.3 million; Mr Azzam invested Dh250,000 in Boardgame Space
Growth: Back to Games: from 300 products in 2015 to 7,000 in 2019; Boardgame Space: from 34 games in 2017 to 3,500 in 2019
Ten tax points to be aware of in 2026
1. Domestic VAT refund amendments: request your refund within five years
If a business does not apply for the refund on time, they lose their credit.
2. E-invoicing in the UAE
Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption.
3. More tax audits
Tax authorities are increasingly using data already available across multiple filings to identify audit risks.
4. More beneficial VAT and excise tax penalty regime
Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.
5. Greater emphasis on statutory audit
There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.
6. Further transfer pricing enforcement
Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes.
7. Limited time periods for audits
Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion.
8. Pillar 2 implementation
Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.
9. Reduced compliance obligations for imported goods and services
Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations.
10. Substance and CbC reporting focus
Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity.
Contributed by Thomas Vanhee and Hend Rashwan, Aurifer
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RESULT
Brazil 2 Croatia 0
Brazil: Neymar (69'), Firmino (90' 3)