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The recovery of European airlines has been hampered by the Russia-Ukraine conflict.

ANKARA, Turkey β€” According to worldwide credit rating agency Fitch Ratings, the European airline sector is being affected by record-high fuel prices as a result of Russia’s assault on Ukraine.

According to the agency’s most recent assessment, the sector has been harmed by recent record-high energy costs and mutual sanctions between Western countries and Russia.

“Even though European airlines have higher hedging positions than other areas,” it stated, “increased jet fuel prices, particularly for carriers with smaller hedging ratios, might impede profitability recovery.”

“This is worsened by bans on flying into and over conflict-affected countries, resulting in traffic losses and longer long-haul trips,” it continued.

Fuel is the most expensive component for airlines, accounting for around a quarter of total costs prior to the conflict and increasing as fuel prices rise.

Not restricting Turkiye’s airspace to Russian flights could help the country.

Fitch stated Turkiye is one of the few countries that allows Russian planes to fly over their territory, despite the fact that other European countries have restricted their airspace to them, according to the article.

It stated that Turkiye’s “carriers, particularly Turkish Airlines, may benefit in the short term from the country’s status as a hub linking Russia with other destinations.”

“Carriers with more southerly routes to Asia, such as Turkish Airlines and Etihad, could profit in the near term in the lack of flying over Russia,” it stated, “but general demand from Asia is yet to be meaningful.”

“Flights across Russia and Ukraine were the quickest routes for many long-haul flights for European airlines, which now have to stretch, resulting in higher costs,” it continued.

Air traffic is still recovering from the coronavirus epidemic, according to the rating agency, with a full recovery to 2019 traffic levels expected by 2024.

“The new geopolitical developments, if they have a long-term impact, will be another setback that will impede the recovery,” the report continued.

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