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What you need to know:Planning Summer Vacation? What to Expect From the 2022
Travel Season

Politics
Prognosis


US LIFTS COVID-19 TEST REQUIREMENT FOR INTERNATIONAL TRAVEL

 * Airline shares rise on prospect of eased test requirement
 * Mandate could be revived if troubling virus variant emerges

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The Biden administration is lifting its requirement that international travelers
test negative for coronavirus before flying to the US, amid pressure from
airlines that viewed the measure as excessive and blamed it for depressing
ticket purchases. The move takes effect June 12. Helance Becker, a Cowen senior
research analyst who follows airlines, says this will be huge for the sector.
She’s on “Bloomberg The Open.”Source: Bloomberg
By

Justin Sink

+Follow
June 10, 2022, 2:09 PM GMTUpdated onJune 10, 2022, 4:03 PM GMT


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IN THIS ARTICLE

4488155Z
US TRAVEL ASSOCIATION
Private Company
AAL
AMERICAN AIRLINE
12.94
USD
+0.78+6.41%



TRACKING COVID-19

271, 492
New cases reported worldwide, June 19
6, 319, 789
Total deaths reported worldwide
12, 027, 841, 773
Vaccine doses administered in 184 countries
+4%
Change in MSCI World Index of global stocks since Jan. 23, 2020
+1. 552
Change in U.S. treasury bond yield since Jan. 23, 2020
Open


The Biden administration is lifting its requirement that all travelers test
negative for coronavirus before flying to the US, amid pressure from airlines
that viewed the measure as excessive and blamed it for depressing ticket
purchases.

The change will take effect just after midnight on June 12 and be reassessed by
the Centers for Disease Control and Prevention in 90 days, according to a senior
administration official who requested anonymity to detail the plan before it was
formally announced. 

Under existing policy, international travelers flying to the US are required to
present proof of a negative coronavirus test taken within a day of their
departure flight to the US. Foreign nationals will still be required to be
vaccinated against coronavirus to enter the country, with limited exceptions.




The health agency may decide to reinstate the requirement if a new, concerning
variant of the virus emerges, the official said. The administration will
continue to recommend testing prior to air travel, but believes that coronavirus
vaccines and new treatments made it possible to ease the requirement.

The move is not likely to significantly increase the risk to the US of
coronavirus spread, according to biosecurity expert Eric Toner, though he said
travelers should still wear masks when they fly to reduce the chance of spread.



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“I have long thought the testing requirement for travel to the U.S. was not
evidence based or logical -- and most other countries have abandoned this
approach,” said Toner, a senior scholar with the Johns Hopkins Center for Health
Security, in an interview. “It’s been a hardship for the airlines and a real
hardship for travelers as people get back to travel for business and leisure.”

Airline stocks climbed briefly on the news, with an S&P index of carriers rising
less than 1% Friday morning before turning negative amid a broader slump in
equities. 

Related: Planning Summer Vacation? What to Expect From the 2022 Travel Season

Where Are We in Hunting for the Coronavirus’s Origin?: QuickTake



Senator Roger Wicker, the Mississippi Republican who is ranking member of the
Senate committee overseeing transportation, said in a statement he was “relieved
that the Biden administration has finally seen reason and removed the
requirement.”



“Ending this burdensome requirement is long overdue and something I have been
urging for months,” Wicker said.

Top airline executives have said in recent weeks that flyers were concerned
about the risk of booking international travel only to become stranded in
foreign countries. While domestic airline ticket purchases have largely
rebounded to pre-pandemic levels, international trips have not. 

“With the widespread availability of effective treatment options and vaccines,
we believe this is the right time for this decision,” American Airlines Group
Inc. said in a statement about the testing decision.


‘HUGE STEP FORWARD’

American Chief Executive Officer Robert Isom called the rule “nonsensical” in
remarks at an industry conference last week and said it was depressing both
business and leisure travel.



The U.S. Travel Association estimated that eliminating the requirement could
bring 5.4 million visitors to the US and an additional $9 billion in travel
spending through the remainder of the calendar year.



“Today marks another huge step forward for the recovery of inbound air travel
and the return of international travel to the United States,” US Travel
Association President and CEO Roger Dow said in an emailed statement. “The Biden
administration is to be commended for this action, which will welcome back
visitors from around the world and accelerate the recovery of the US travel
industry.”

The travel and tourism industry has traditionally supported one in 20 US jobs,
either directly or indirectly, creating $1.9 trillion in economic activity in
2019, the Commerce Department said in a fact sheet this week.



But the Covid-19 pandemic cut deeply into the industry. Even with a partial
recovery, spending by international visitors in 2021 was only 34% -- $81 billion
-- of pre-pandemic levels, the Commerce Department said.

“It’s huge for the industry,” Helane Becker, a senior research analyst at Cowen,
said Friday in an appearance on Bloomberg Television. The change should have
“huge positive effects on international travel right into the fall,” she said.

— With assistance by Alan Levin, and Riley Griffin

(Updates to include additional information throughout.)




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4488155Z
US TRAVEL ASSOCIATION
Private Company
AAL
AMERICAN AIRLINE
12.94
USD
+0.78+6.41%



TRACKING COVID-19


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