The surge in energy prices over the past two years has been the largest since the 1973 oil crisis, the World Bank said.
Qatar Airways Chief Executive Officer Akbar Al Baker has warned about the airline industry possibly facing yet another recession as a result of the soaring oil prices triggered by the ongoing conflict between Russia and Ukraine.
“Once the cost of energy rises, then the cost to carry goods and passengers rises – all this also could start a second recession in our industry,” said Al Baker in an interview with aviation analyst John Strickland, according to the Gulf News.
Since the world saw the onset of the Russian invasion of Ukraine nearly three months ago, the aviation industry has been affected in many different ways. Airlines have been prompted to detour flights from dangerous air zones, leased aircraft have become stranded in Russia, and the Antonov An-225 has been wrecked.
The footage of An-225’s destruction in the first week of May circled around on Twitter by Illia Ponomarenko, a defence correspondent for the Kyiv Independent. Currently at the Kyiv Hostomel also known as Antonov Airport, the aircraft’s dire damage is presumably due to the impact of the shelling that befell Hostomel Airport in February.
“I hope I’m wrong, but we need to be prepared. We need to be on our guard too because anything could happen over the next 12-24 months. We also don’t know if this conflict will go beyond the borders of Ukraine,” Al Baker continued.
The nature of the conflict implies that long-term effects are also possible.
The Russian and Ukrainian conflict has had a direct impact on the world economy, with commodity prices experiencing a significant increase.
Oil prices will remain above $100/barrel so long as the conflict…