The ongoing conflict is having a financial impact on the sector, with jet fuel prices more than doubling, CEO Campbell Wilson said.

What Did Air India’s Chief Executive Officer Say?
Wilson, in a note, stated that the airline is facing the brunt of the ongoing conflict in the Middle East.“The world, our region and our industry continue to contend with the impact of the ongoing conflict in the Middle East…the impact on Air India Group is significant given the usual scale of our operations to, and through, the Middle East,” Wilson said.“In the three weeks since the conflict started, we have had to cancel around 2,500 flights to the region. As of today, we can operate only around 30% of our normal Middle East schedule because airports and/or airspace are closed, or are assessed to be beyond our safety thresholds,” he added.Financial Impact On Airline Sector
The ongoing conflict has severely affected the airline. The disruption has started affecting the sector financially, with jet fuel prices hiking. Wilson stated that Air India will witness most of the financial impact from next month, adding that the airline has already imposed a fuel surcharge on new tickets.“Other flights to the UK, Europe and North America are being rerouted even further from the already longer flight paths we’ve been using since the Pahalgam event last year, consuming more fuel and adding more time,” he said.New Opportunities Amid Weakening Travel Demand
Campbell Wilson highlighted the issue of weakening travel demand amid broader economic uncertainty. But at the same time, the airline is witnessing “pockets of new demand” in markets such as Europe and North America. Now, the airline is deploying additional flights to these regions.The United States and Israel carried out deadly airstrikes on Iran on February 28. These strikes killed Iran’s supreme leader, Ayatollah Khamenei and other political and military figures. In a retaliatory attack, Tehran carried out drone and missile attacks on US bases located in the region.Source link

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