For Middle East airlines, staff shortages and inflation weigh down recovery

For Middle East airlines, staff shortages and inflation weigh down recovery

Dubai: Labour shortages and inflation are the biggest issues facing the aviation sector right now, according to HR consultancy Oliver Wyman. The industry is struggling to ramp up capacity due to a severe staffing deficit in most markets, while the Russia-Ukraine conflict adds to the fuel price spike, thus directly affecting airlines’ margins. Labour shortages are across the board, from pilot to baggage handler and ticket agent to flight attendant to aircraft mechanic, said the consultancy. The report said that the conflict in Ukraine had “exacerbated” existing stress on commodity markets and supply chains, and resulted in flight restrictions due to closures of airspace and sanctions. In January, Middle East countries represented the second largest destination for air travelers from Russia, at 28 per cent measured by scheduled seats (behind Europe with 42 per cent). In the other direction, UAE represented 9 per cent of the share of international seats headed to Russia at the same point in time, second only to Turkey. “Every downturn in the global economy has proven to be the time for new market entrants in the airline industry,” said André Martins, Partner – Head of IMEA Transportation and Services at Oliver Wyman. “This time around,