ME aviation sector grappling with inflation, labor shortages, and fuel prices: Report

ME aviation sector grappling with inflation, labor shortages, and fuel prices: Report

The Middle East’s aviation sector is grappling with soaring fuel prices, labor shortages, and inflation as it emerges from the COVID-19 pandemic, making it more difficult for airlines to satisfy growing demand and deal with rising operational costs, according to new research.

According to management consulting firm Oliver Wyman’s latest ‘Airline Economic Analysis’ report, labor shortageswere observed across the board, including pilots, ticket agents, flight attendants, baggage handlers, and airline mechanics.

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One of the biggest issues facing the industry, which is still recovering from the devastation caused by the pandemic, is the rise in fuel prices which is directly affecting operational costs.

“Airlines have been at the receiving end with the fuel price hikes and personnel shortage impacting their bottom-line,” André Martins, Partner – Head of IMEA Transportation and Services at Oliver Wyman said in a statement on Monday.

The war in Ukraine has also exacerbated existing stress on commodity markets and supply chains. This has led to flight restrictions due to airspace closures brought on by sanctions imposed on Russia.

In January this year, before the conflict began in Ukraine, Middle Eastern countries represented the second-largest destination for air travelers from