Ukraine Crisis Creates Logistics Headaches for Air Cargo, Airlines

Wednesday, March 02, 2022 at 12:36 PM ET

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Finnair is evaluating how to divert flights around Russia to Asia because of the additional fuel cost involved. [Courtesy: Finnair]

Key Takeaways:

Airspace bans between Western countries and Russia are forcing airlines to take longer, less efficient routes, particularly for Europe-Asia flights, significantly increasing flight times and fuel consumption.
The conflict is driving up operating costs for airlines due to surging fuel prices and extended routes, making some flights economically unsustainable and leading to cancellations.
Global air cargo capacity has been severely reduced due to impacts on major carriers like Antonov and Russian operators, contributing to an anticipated sharp rise in airfreight rates.
Overall, the crisis adds significant logistical complexity, financial strain, and uncertainty, further impeding the post-pandemic recovery for both cargo and passenger airlines.

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Editor’s Note: This article originally appeared on FreightWaves.com.

Airspace restrictions from the economic war between the West and Russia over the invasion of Ukraine is adding logistical complexity and cost for the air cargo sector and passenger airlines still coping with COVID-related ups and downs in business activity. The conflict is also driving up the price of fuel, which represents a quarter or more of airlines’ cost base.