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Aircraft and transport. Ukraine conflict: four effects on the sector

From chaos in EU skies to higher ticket and fuel prices

The conflict between Russia and Ukraine have a major impact on the passenger, cargo and charter airline industry. It's not just because Canada, the European Union and the United States have closed airspace to Russian airlines. In fact, there are several other important effects that the war is causing to the aviation industry, hitted by two years of pandemic.

First and foremost the closure of airspace in Russia and Ukraine will hinder Asian and European airlines, which will have to use routes over the North Pole to reach China, Japan, Singapore and other countries. Or switch to the South. Meanwhile, some flights have already been cancelled while others may be rerouted.

Second, the fuel supply from Russia threatened by economic sanctions is creating uncertainty in the markets. This leads to an increase in fuel costs, among the first items of expenditure for airlines. Therefore these will experience a delay in the return to profitability and therefore drive up airline ticket prices. 

Third. The situation worries European travelers in particular. Their fears could negatively affect the 2022 summer season, with thousands of missed bookings for domestic connections and travel between the US and Europe. Countries adjacent to Russia will be most at risk, but vacation spots such as Spain, France, Italy, Germany and the United Kingdom could experience a significant drop in tourist flows. 

Finally airline alliances. Two of the top three globally have Russian airlines as partners. Skyteam hosts Aeroflot with whom Delta Air Lines has decided to cancel the marketing relationship. The Oneworld Group has Jsc Siberia Airlines as a partner and will have to make a decision on keeping this airline within the global alliance. Because the flap of a butterfly's wings causes a hurricane on the other side of the world.

On the same subject see also the article published by AVIONEWS.

Gic - 1242674

AVIONEWS - World Aeronautical Press Agency
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