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British Airways Owner IAG Prepares for Summer Surge Amid High Travel Demand

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As the world gradually emerges from the grip of the pandemic, the travel industry is witnessing a resurgence in demand with British Airways owner IAG SA gearing up for a busy summer season.

Despite lingering challenges, the airline conglomerate remains optimistic about the outlook, citing strong demand for travel within Europe and across the Atlantic.

In a recent stock exchange filing, IAG disclosed an adjusted operating profit of €68 million ($73.3 million) for the three months ending March.

According to Chief Executive Officer Luis Gallego, the group’s core markets, including the North Atlantic, South Atlantic, and intra-Europe routes, have shown robust performance, positioning them well for the upcoming peak travel period.

With vaccination rates increasing and travel restrictions easing in many parts of the world, consumers are eager to resume travel plans, fueling the surge in demand.

However, the road ahead is not without its challenges. While travel within Europe and across the Atlantic remains strong, other regions present a more complex operating environment.

The ongoing conflict in the Middle East has dampened demand for certain destinations, while airspace restrictions resulting from geopolitical tensions, such as the Russian invasion of Ukraine, have disrupted flight routes to East Asia.

Despite these hurdles, IAG remains resilient, banking on the strength of its core markets and the performance of its brands to weather the storm.

The company’s strategic positioning and proactive measures to adapt to changing circumstances have positioned it to capitalize on the rebound in travel demand.

As the summer season approaches, IAG is focused on ensuring operational readiness to meet the surge in passenger numbers.

With travelers eager to reconnect with loved ones, explore new destinations, and embark on long-awaited vacations, the airline group stands ready to facilitate safe and seamless travel experiences.

As vaccination campaigns progress and travel sentiment rebounds, IAG’s proactive approach and strategic investments position it as a key player in the aviation industry’s recovery journey. With optimism on the horizon, the company remains committed to delivering exceptional service and fostering a seamless travel experience for passengers worldwide.

Is the CEO/Founder of Investors King Limited. A proven foreign exchange research analyst and a published author on Yahoo Finance, Businessinsider, Nasdaq, Entrepreneur.com, Investorplace, and many more. He has over two decades of experience in global financial markets.

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EU to Raise Schengen Visa Fees, African Nationals Hit Hardest

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Starting Tuesday, African nationals seeking entry to the European Union will face increased visa fees as the EU raises the cost of Schengen visa applications from €80 to €90.

This 12.5% hike announced by the EU Commission adds to the financial burden for many applicants, particularly from African countries that already face high rejection rates and significant expenses.

According to recent Schengen visa statistics, African nationals received 704,000 negative responses to their visa applications in 2023.

This high rate of rejections resulted in approximately €56.3 million spent on non-refundable visa fees.

The report highlights that these expenses, referred to as ‘reverse remittances,’ represent a substantial financial outflow from African countries to the EU, benefiting no one but the recipient nations.

The impact of these costs is disproportionately felt by African applicants, who accounted for 43.1% of the total amount generated by rejected applications in 2023.

Among the hardest-hit were nationals from Algeria and Morocco. Algerians, who filed the second-highest number of applications, saw 42.3% of their 289,000 requests denied.

Moroccan nationals faced an even higher rejection rate, with 62% of their 437,000 applications being turned down, leading to €10.9 million spent on unsuccessful visa bids.

Overall, the EU earned €3.4 million from rejected Schengen visa applications submitted by Nigerian citizens alone, illustrating the significant financial burden placed on individual applicants.

The high rejection rates for African and Asian countries, which together bear 90% of all visa-related expenses, exacerbate the economic challenges faced by applicants from these regions.

The recent study by EU Observer underscores the growing trend of increased expenses and rejection rates.

Schengen visa rejections generated €130 million in 2023, up from €105 million the previous year, indicating a rise in both visa costs and the financial impact on applicants.

Marta Foresti, founder of the LAGO Collective, commented on the broader implications of these financial dynamics.

“Visa inequality has very tangible consequences and the world’s poorest pay the price. You can think of the costs of rejected visas as ‘reverse remittances’, money flowing from poor to rich countries. We never hear about these costs when discussing aid or migration; it is time to change that,” she said.

As the EU implements the new visa fee structure, the financial strain on African nationals is set to intensify. With some of the lowest wages globally, many Africans will find the increased costs even more challenging to bear.

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UAE to Lift Visa Ban on Nigerians, Says Aviation Minister Festus Keyamo

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The longstanding visa face-off between Nigeria and the United Arab Emirates (UAE) is set to end, according to Nigeria’s Minister of Aviation and Aerospace Development, Festus Keyamo.

The announcement came during a welcome dinner for delegates attending the International Air Transport Association (IATA) 80th Annual General Meeting and World Air Transport Summit in Dubai.

In his address on Monday, Keyamo disclosed that the diplomatic disputes that led to the UAE imposing a visa ban on Nigerians have been resolved.

“The issue of visa has been resolved, just the announcement remaining. They want to dot the I’s and cross the T’s. The announcement will be in a couple of weeks,” he stated.

The visa ban, which severely restricted travel for Nigerians to the UAE, particularly to popular destinations like Dubai, was initially imposed due to a series of diplomatic disagreements.

However, recent efforts spearheaded by President Bola Tinubu, who intervened in August 2023, have paved the way for a resolution. This intervention also addressed the related face-off with Emirates Airlines, which had suspended its flights to Nigeria.

The significance of the resolution was underscored by the warm reception Keyamo received at the summit.

Accompanied by the ruler of Dubai, Sheikh Mohammed Al Maktoum, Keyamo’s entrance was met with applause from over 2,000 delegates.

This reception, Keyamo noted, is a testament to the valued relationship between Nigeria and the UAE.

In a conversation with journalists on the sidelines of the event, Keyamo explained the importance of restoring and maintaining strong ties with the UAE.

“The UAE is considered a very important partner to Nigeria. Nigerians have a lot of stakes here in the UAE with significant investments. We are making it a priority to ensure that the travel route is reopened and that the visa application process is made easier for Nigerians,” he said.

Keyamo also highlighted the trust and value the UAE places on its relationship with Nigeria.

“I was on the same ride with the ruler of Dubai, the Minister, and the head of Emirates Group, along with other top officials. This level of engagement shows how much they value Nigeria and how they want to rebuild this relationship,” he added.

The lifting of the visa ban is expected to have a substantial positive impact on both nations. It will not only facilitate travel for Nigerians seeking to visit or invest in the UAE but also strengthen economic and diplomatic ties between the two countries.

As the final details are being fine-tuned, Nigerians eagerly await the formal announcement. The resolution marks a significant diplomatic achievement and opens the door for renewed cooperation and mutual benefit.

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Kenya Airways Set to Boost Presence in Nigeria with Plans for Abuja Hub

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Kenya Airways, the East African aviation giant, is gearing up to significantly expand its footprint in Nigeria by establishing a new operational hub in Abuja, as part of its broader strategy to enhance connectivity across the African continent.

In an exclusive interview with journalists at the airline’s office in Lagos, Julius Thiarus, the Customers Commercial Manager of Kenya Airways, revealed the company’s ambitious plans.

Thiarus emphasized the importance of Nigeria as a key market for Africa and highlighted Kenya Airways’ commitment to establishing its presence in major cities across the continent.

“We want to be in every significant city in Africa. We want to fulfil that mandate by coming into Abuja, which is part of our strategy aligning with what we see as growth in travel,” Thiarus stated, underlining the airline’s strategic vision.

Kenya Airways aims to capitalize on the burgeoning market size and economic significance of Nigeria by bolstering its operations in Abuja. Thiarus highlighted the importance of cargo transportation for the airline, emphasizing the need to reduce reliance on external sources for essential supplies to Africa.

To this end, Kenya Airways recently added two cargo freighters to its fleet, doubling its capacity to meet the growing demand for cargo services across the continent.

Addressing the issue of low passenger traffic from Nigeria to Kenya, Thiarus outlined plans to increase the airline’s daily frequencies to Lagos from one flight per day to two flights.

He also revealed that Kenya Airways is strongly considering establishing a new route to Abuja, with plans to commence operations next year.

“We are looking at Abuja and probably sometime next year to establish that flight to Kenya and beyond Africa,” Thiarus remarked, highlighting the airline’s commitment to enhancing connectivity between Nigeria and other African countries.

Despite Nigeria’s vast population and potential as a tourism market, Thiarus acknowledged that the current number of Nigerian visitors to Kenya is relatively low.

He stressed the importance of collaborative efforts between airlines, tourism boards, and government agencies to promote travel and tourism between Nigeria and Kenya.

“Nigeria is important for Africa, and Africa will never prosper if Nigeria is not prosperous,” Thiarus emphasized, underscoring the significance of Nigeria’s economic growth for the overall development of the continent.

Kenya Airways’ ambitious plans to establish a hub in Abuja signal a new chapter in the airline’s expansion strategy, aiming to strengthen its presence in Nigeria and enhance connectivity across Africa.

As the aviation industry continues to evolve, Kenya Airways remains poised to play a pivotal role in shaping the future of air travel on the African continent.

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