All because of the war with Iran.
Illustrative photo. Photo: Nasha Niva
The war with Iran is hitting airlines, especially low-cost carriers, warned Willie Walsh, head of the International Air Transport Association (IATA). Due to a sharp rise in gas prices and the closure of important routes, airlines have to fly around them and incur additional costs, reports Bild.
«Unfortunately, I'm afraid that some airlines will find it very difficult to cope with such high fuel prices,» Walsh said at the annual IATA meeting in Rio de Janeiro.
According to him, weaker players might leave the market or be absorbed by larger competitors, and some companies will start closing unprofitable routes. Budget carriers are especially vulnerable: they don't have revenue sources like business class or large loyalty programs.
At the same time, Walsh does not consider the low-cost model a failure and cites Ryanair, which continues to grow successfully in Europe, as an example.
The conflict has already seriously complicated traffic through Dubai, Doha, and Abu Dhabi, causing Emirates, Qatar Airways, and Etihad to suffer. Additional problems for the industry include delays in aircraft and engine deliveries from Boeing, Airbus, GE Aerospace, and Pratt & Whitney.
According to IATA's estimates, supply chain disruptions cost airlines approximately 11 billion dollars in 2025.
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