Middle East Conflict: A Blow For Airlines On The East-West Corridor

ING Economic and Financial Analysis5.21K FollowersFollow5ShareSavePlay(6min)CommentsSummaryThe outbreak of war in the Middle East on February 28 triggered an immediate wave of flight cancellations across the region.Financially, the biggest hit falls on intercontinental carriers operating in the region and Middle Eastern airlines in particular, while US carriers are less affected.Airline fuel costs can account for 20-30% of total airline operating costs, especially for long-haul carriers. When jet fuel prices go up, this quickly leads to higher costs.The impact of this will be uneven, though, and it varies with the extent to which carriers hedged future fuel price rises.

Getty Images By Rico Luman, Senior Sector Economist, Transport and Logistics Intercontinental carriers in the eye of the storm The outbreak of war in the Middle East on February 28 triggered an immediate wave of flight cancellations across theThis article was written byING Economic and Financial Analysis5.21K FollowersFollowFrom Trump to trade, FX to Brexit, ING’s global economists have it covered. Go to ING.com/THINK to stay a step ahead. We’re sorry we can’t reply to individuals' comments.Content disclaimer: The information in the publication is not an investment recommendation and it is not investment, legal or tax advice or an offer or solicitation to purchase or sell any financial instrument.This publication has been prepared by ING solely for information purposes without regard to any particular user's investment objectives, financial situation, or means. For our full disclaimer please click here.