Kinh tế

The aviation industry is invincible

Hong Quang (VTV reporter residing in Europe)Monday, March 28, 2022 11:55 GMT+7

Soaring fuel prices, longer flight routes to avoid Russia and Ukraine are putting pressure on airfares to increase, with indirect consequences for the tourism industry.

The aviation industry is unremarkable - Photo 1.

The war in Ukraine costs airlines more. (Illustration image – Photo: Reuters)

Just the middle of last month, the stocks of companies air European prices increase continuously. At that time, many European countries began to lift epidemic prevention measures, the tourism industry was expected to recover, leading to the aviation industry.

But war broke out in the heart of Europe, and airline stocks plunged. There were many problems at the same time, the first being the soaring fuel prices.

Sheet Borsen In Denmark, there was an article: “Then there will be an increase in airfares, there is no other way”. The article writes that, with the current increase in fuel prices, ticket prices must increase by 10% to be able to cover expenses. “The prospect is bleak”, according to the article, “gasoline for airplanes at the moment is 837 USD/ton, is expected to reach 1,296 USD by the end of this year. With long flights, especially the route connecting Europe Europe and Asia, ticket prices will increase at the highest rate.”

The second problem is that many routes have to fly around to avoid the war zone. For example, a direct flight from Hanoi to Paris normally takes just over 12 hours, but now the zigzag flight lasts nearly 15 hours.

Newspaper Lidove noviny There is an article about Finnair Finland, the situation is similar. According to the article, in the past, the flight from Helsinki to Tokyo was less than 9 hours, 8,000 km, but now it has to bypass Russian airspace, takes up to 13 hours, 12,000 km, consuming 40% more fuel.

The war in Ukraine costs airlines more. Russia also lost revenue, according to the Swedish newspaper Folkbladet. Previously, each year, about 300,000 commercial flights passed through Russia, creating a stable source of revenue for the use of airspace for Russia, now that revenue is no longer available.

With airlines, flying around, avoids increasing fuel, labor and aircraft maintenance costs. It is estimated that for every extra hour of flying in the sky, the airline has to spend an additional $20,000.

While short- and medium-range routes are starting to become profitable, long-range routes linking Europe with Asia will be forced to increase fares, according to the newspaper. Le Figaro out in France. On average, airfares must increase by 7-8% on routes longer than 5 hours. According to the article, if crude oil does not fall below the threshold of 100 USD / barrel, the price of air tickets may have to increase by 16%.

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