Post-pandemic recovery of aviation in the Middle East

Post-pandemic recovery of aviation in the Middle East

Dubai: 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, according to Oliver Wyman’s recent Airline Economic Analysis 2021-22.

As summer school holidays begin in the Middle East and airlines get busier, we look at what the findings mean from a regional perspective.

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.”

Key insights for the Middle East include:

Labour shortages are 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.

The conflict in Ukraine has exacerbated existing stress on commodity markets and supply chains and meant flight restrictions due to closures of airspace and sanctions. In January 2022, just before the conflict began, Middle East countries represented the second largest destination for air travellers from Russia, at 28 per cent measured by scheduled seats (behind Europe with 42 per cent). In the other direction,