Airline fuel prices slashed by USD 0.15 per gallon starting 21 January
The aviation industry is getting a break on fuel through the end of the year after the government decided yesterday to slash prices by another USD 0.15 / gallon as of 21 January to help airliners stay afloat through covid-19, according to a cabinet statement. This is the second time the government has cut fuel costs for airlines since the pandemic began, reducing prices by USD 0.10 / gallon in April.
Policymakers hope the move encourages air carriers to increase flights to domestic tourist destinations and comes as the government launches a campaign to persuade more Egyptians to vacation locally. Tourism Minister Khaled El Anany said he hoped the initiative would encourage airlines to increase their flights to Egypt’s tourist destinations and boost the industry as a whole.
Do we need another reminder? Egypt’s tourism sector has been battered by the pandemic after the partial shutdown of the economy and suspension of international flights in 2Q2020 all but shuttered the sector. And things weren’t that much better as restrictions were relaxed in the summer as global concern over the pandemic remained before the second wave in the winter saw much of the developed world return to lockdown. All in all Egypt saw a 77% y-o-y drop in arrivals last year leading to a 85-92% collapse in revenues.