With the coronavirus pandemic depressing travel demand, airlines in the UAE are cutting fares to boost revenue for the summer, a crucial season for the aviation industry.

Carriers all over the world have been hammered by stringent precautionary measures introduced by various jurisdictions last year to eliminate COVID-19 infections.

In the UAE, demand began to rise in the fourth quarter of 2020, but now that travel restrictions have been reinstated, several airlines are struggling to fill seats.

Etihad Airways, the latest airline to announce discounts, announced on Thursday that travelers can now book a Seychelles vacation for less, with roundtrip economy fares starting at 995 dirhams ($270). That's around a fraction of what you'd pay in the summer. For 1,995 dirhams, you can get a flight to the Maldives.

The special Etihad rates are valid until March 31 and can be used on flights until June 30, 2021. Flydubai, the budget airline, had previously launched a promotional campaign, tempting travelers with special return fares starting at 755 dirhams.

Negative outlook

In addition to reduced fares, airlines have developed several vacation packages. Packages to Africa, Central Asia, Europe, and the subcontinent, as well as the Middle East, starting at 1,899 dirhams per person on Flydubai. Etihad and Flydubai are both steadily resuming flights in a variety of destinations.

In light of the new round of COVID-19 restrictions, the International Air Transport Association (IATA) said this month the outlook for airlines is likely to worsen until a recovery is initiated.

Global passenger traffic plummeted 72% in January. This was worse than the 69.7% year-over-year decrease seen in December 2020.

“The airlines are having an especially rough start to the year in terms of passenger traffic, which accounts for the majority of revenues... “[The situation] will deteriorate until it improves,” said Brian Pearce, IATA's chief economist.