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00:00What disruption is the travel sector that expecting this summer and why. Well I'm not Cudmore and managed to escape just in time because the reality is industrial action in the travel sector is threatening to disrupt that recovery. The industry has been yearning for it since the pandemic walkouts at low cost carriers such as Ryanair easyJet a strike at Charles de Gaulle Airport in Paris and national rail strike in France following similar action here in the United Kingdom and British Airways. Ground staff at Heathrow all have one thing in common that is paid workers feeling that wages eroded by inflation. The latest CPI reading for the eurozone eight point seven percent year over year. The latest reading for the United Kingdom nine point one percent. Workers want to be fairly compensated against that tough macro backdrop at a time when demand is booming. To add to this there have been capacity announcement cuts at airports and airlines as they struggle to operate as passenger numbers normalize for Schiphol Airport in Amsterdam. The drop will be 20 percent over the key summer period for Gatwick and British Airways. It will be 11 percent and 10 percent respectively. A lot of work has left the industry during the pandemic. They have found jobs elsewhere and they are reluctant to return to a volatile sector. According to data from I after employment worldwide in the airline sector was two point nine million. The end of 2019 and it is projected to reach two point seven million by the end of 2022. That leaves a shortfall of 200000 workers. While Laura. Good morning. Some pretty bleak starts there. I guess we're also excited for the post Covid travel world. What are the consequences in both the short and medium term of all this in the short term. Flight cancellations. My board shows country flight cancellations for the month of June compared to June in 2019. Across the board the picture is concerning. Italy is a notable laggard with flight cancellations up four hundred forty two percent. The United States is the out performer with cancellations up just 22 percent illustrating that the disruption is less pronounced in the United States than in Europe. Longer term the key question is where will demand fall after the peak summer season given the pressures on cost of living. Ticket price is already elevated compared to 2019 levels in just over the weekend. Ryanair CEO Michael O'Leary says that current affairs are too cheap given the pricing pressures that airlines are facing. You can see some really ugly price drops over the last month for airlines and analysts looking forward are debating whether at these levels airlines are a bargain or considerably overvalued. Yeah really interesting to see those one month drop sending share prices lower. Given the extent to which everyone is attempting to return back to flying. Laura thanks very much. IBEX right with the latest on the aviation sector.

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Europe Faces Summer of Travel Chaos

From London to Amsterdam to Berlin, chaotic scenes are playing out at airports as the fine-tuned interplay between check-in desks, security personnel and baggage handlers unravels. Laura Wright reports on Bloomberg Television. (Source: Bloomberg)

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