Just when the airline industry thought it was on the flight path to full recovery from the pandemic doldrums, war broke out in Ukraine.
These poor airlines just can’t catch a break!
Like many sectors of the economy, the airline industry has been rocked by rising fuel prices that have been exacerbated by the war in Ukraine. Russia, as you know by now, is one of the world’s largest producers of oil and natural gas.
So, now that gas prices continue to soar—and could rise to as high as $170 per barrel according to some experts— the airline industry faces two problems: reduction in consumer demand and rising fuel costs that cut into company margins.
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