Labour and inflation key issues for Middle East Aviation recovery

Labour and inflation key issues for Middle East Aviation recovery

Oliver Wyman’s recent Airline Economic Analysis 2021-2022 found that labour shortages and inflation were the two biggest issues facing the aviation sector as it emerges from the COVID-19 pandemic, making it difficult for airlines to satisfy growing demand and pushing up operational expenses. As Middle East and airlines get busier, the company looked at what the findings mean from a regional perspective.

Some of the key insights for the Middle East include labour shortages across the board, from pilots, to baggage handlers, to ticket agents, to flight attendants, to aircraft mechanics. The rise in the price of fuel is the main factor in rising costs. According to André Martins, Partner - Head of IMEA Transportation and Services at Oliver Wyman, “airlines have been at the receiving end with the fuel price hikes and personnel shortage impacting their bottom-line”.