• Login
  • Register
Nairametrics
  • Home
  • Exclusives
    • Financial Analysis
    • Corporate Stories
    • Interviews
    • Investigations
    • Metrics
    • Economy
    • Nairalytics
  • Markets
    • Currencies
    • Cryptos
    • Commodities
    • Equities
      • Company Results
      • Dividends
      • Stock Market
    • Fixed Income
    • Market Views
    • Securities
  • Sectors
    • Agriculture
    • Aviation
    • Company News
    • Consumer Goods
    • Corporate Updates
    • Corporate deals
    • Corporate Press Releases
    • Energy
    • Entertainment
    • Financial Services
    • Health
    • Hospitality & Travel
    • Manufacturing
    • Real Estate and Construction
    • Renewables & Sustainability
    • Tech News
  • Business News
    • Budget
    • Public Debt
    • Funds Management
    • Tax
  • Financial Literacy
    • Career tips
    • Personal Finance
  • Lifestyle
    • Billionaire Watch
    • Profiles
  • Opinions
    • Blurb
    • Op-Eds
    • Research Analysis
  • Recapitalization
    • Access Holdings Offer
    • Fidelity Bank Offer
    • GTCO Offer
    • Zenith Bank Offer
  • Home
  • Exclusives
    • Financial Analysis
    • Corporate Stories
    • Interviews
    • Investigations
    • Metrics
    • Economy
    • Nairalytics
  • Markets
    • Currencies
    • Cryptos
    • Commodities
    • Equities
      • Company Results
      • Dividends
      • Stock Market
    • Fixed Income
    • Market Views
    • Securities
  • Sectors
    • Agriculture
    • Aviation
    • Company News
    • Consumer Goods
    • Corporate Updates
    • Corporate deals
    • Corporate Press Releases
    • Energy
    • Entertainment
    • Financial Services
    • Health
    • Hospitality & Travel
    • Manufacturing
    • Real Estate and Construction
    • Renewables & Sustainability
    • Tech News
  • Business News
    • Budget
    • Public Debt
    • Funds Management
    • Tax
  • Financial Literacy
    • Career tips
    • Personal Finance
  • Lifestyle
    • Billionaire Watch
    • Profiles
  • Opinions
    • Blurb
    • Op-Eds
    • Research Analysis
  • Recapitalization
    • Access Holdings Offer
    • Fidelity Bank Offer
    • GTCO Offer
    • Zenith Bank Offer
Nairametrics
No Result
View All Result
Home Sectors Hospitality & Travel

Here are 3 risk factors affecting airlines globally in 2022

Abiola Odutola by Abiola Odutola
July 4, 2022
in Hospitality & Travel
Aviation, Airline operators will pay $3,500 per passenger if they break protocols – PTF COVID-19, Global Air passenger slump to persists til 2023- Moody’s 2023- Moody’s
Share on FacebookShare on TwitterShare on Linkedin

War in Ukraine, interest rate hikes, and COVID-19 are the three major factors affecting airlines in Nigeria and globally in 2022.

This was disclosed by IATA in its recent outlook, which was shared with Nairametrics.

According to the report, the factors will further have an impact on the growth of the industry and may slow the recent growth witnessed.

RelatedStories

Nigerian airlines airlifts 42,177,058kg of cargo in 5 years –FAAN

African airlines increase cargo capacity by 9.7% in April, demand up 4.7% – IATA 

May 31, 2025
Airlines, African airlines

IATA reports 13.6% rise in African airlines’ international passenger demand in April 2025 

May 31, 2025

What IATA is saying about the 2022 outlook

War in Ukraine

  • It stated, “The impact of the war in Ukraine on aviation pales compared with the unfolding humanitarian tragedy. The outlook assumes that the war in Ukraine will not escalate beyond its borders. Among the many negative impacts of an escalation for aviation, rising fuel costs and a dampening demand due to lowered consumer sentiment would be paramount.
  • Passenger: Combined, the Russian international market, Ukraine, Belarus, and Moldova accounted for 2.3% of global traffic in 2021. In addition, about 7% of international passenger traffic (RPK) would normally transit Russian airspace (2021 data), which is now closed to many operators, mostly on long-haul routes between Asia and Europe or North America. There are significantly higher costs for re-routing for those carriers affected.
  • Cargo: Just under 1% of global freight traffic originated in or is transited through Russia and Ukraine. The greater impact is in the specialized area of heavy-weight cargo where Russia and Ukraine are the market leaders, and the corresponding capacity loss will be difficult to replace. And about 19% of international cargo shipments (CTKs) transits through Russian airspace (2021 data). Carriers impacted by sanctions face higher costs for re-routing.

Interest rates

  • “Interest rates are rising as central banks combat inflation. Aside from those carrying debt (who will see inflation devaluing their debts), inflation is harmful and has the economic dampening effect of a tax by reducing purchasing power. There is a downside risk to this outlook should inflation continue to rise, and central banks continue to hike interest rates.
  • “Moreover, the record strength of the US dollar, if it continues, will have a negative impact as a strong US dollar is growth dampening in general. It increases the local-currency price of all USD-denominated debt, and adds to the burden of paying for USD-denominated fuel imports as well.”

Covid-19

  • The underlying demand for travel is strong. But government responses to COVID-19 ignored World Health Organization advice that border closures are not an effective means of controlling the spread of a virus. The outlook assumes that strong and growing population immunity to COVID-19 means there will not be a repeat of these policy mistakes. There is, however, downside risk should governments return to knee-jerk border-closing responses to future outbreaks.
  • “Governments must have learned their lessons from the COVID-19 crisis. Border closures create economic pain but deliver little in terms of controlling the spread of the virus. With high levels of population immunity, advanced treatment methods, and surveillance procedures, the risks of COVID-19 can be managed. At present, there are no circumstances where the human and economic costs of further COVID-19 border closures could be justified,” said Willie Walsh, IATA’s Director-General.
  • “China’s domestic market alone accounted for about 10% of global traffic in 2019. This outlook assumes a gradual easing of COVID-19 restrictions in the second half of 2022. An earlier move away from China’s zero COVID policy would, of course, improve the outlook for the industry. A prolonged implementation of the COVID-19 policy will continue to depress the world’s second-largest domestic market and wreak havoc with global supply chains,” it added.

Follow us for Breaking News and Market Intelligence.
Tags: IATAWillie Walsh
Abiola Odutola

Abiola Odutola

For further inquiries about this article, contact: Email: abiola.odutola@nairametrics.com Twitter: @AbiolaOdutola @nairametrics

Related Posts

Nigerian airlines airlifts 42,177,058kg of cargo in 5 years –FAAN
Aviation

African airlines increase cargo capacity by 9.7% in April, demand up 4.7% – IATA 

May 31, 2025
Airlines, African airlines
Aviation

IATA reports 13.6% rise in African airlines’ international passenger demand in April 2025 

May 31, 2025
Airlines, African airlines
Aviation

African airlines record 14.9% passenger demand growth in January 2025 – IATA 

February 28, 2025
CBN,Cargo
Aviation

Global air cargo sees 3.2% demand growth, 6.8% capacity expansion in January 2025 – IATA 

February 28, 2025
Aircraft navigation system disruptions surge by 175% in 2024 – IATA 
Aviation

Aircraft navigation system disruptions surge by 175% in 2024 – IATA 

February 26, 2025
Airlines, African airlines
Aviation

Airlines globally reached record seat occupancy, hitting 83.5% load factor in 2024 – IATA 

January 31, 2025
Next Post
How FoodCo surmounted challenges to become Nigeria’s fastest-growing retailer

How FoodCo surmounted challenges to become Nigeria’s fastest-growing retailer

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Emple
nlng
first bank
Zenth Bank








DUNS

Recent News

  • CBN’s Forbearance, Lawyers, and Mega Deals: Chike Obianwu on Drinks and Mics
  • How to apply for the Federal Ministry of Education’s TVET program with N45,000 monthly stipend 
  • SEC warns Nigerians against unregistered trading platform CMTrading 

Follow us on social media:

Recent News

CBN’s Forbearance, Lawyers, and Mega Deals: Chike Obianwu on Drinks and Mics

CBN’s Forbearance, Lawyers, and Mega Deals: Chike Obianwu on Drinks and Mics

June 21, 2025
FG announces N45,000 monthly stipend for technical college students nationwide 

How to apply for the Federal Ministry of Education’s TVET program with N45,000 monthly stipend 

June 21, 2025
  • iOS App
  • Android App
  • Contact Us
  • Home
  • Markets
  • Sectors
  • Economy
  • Business News
  • Financial Literacy
  • Disclaimer
  • Ads Disclaimer
  • Copyright Infringement

© 2025 Nairametrics

Welcome Back!

Login to your account below

Forgotten Password? Sign Up

Create New Account!

Fill the forms below to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In
Social Media Auto Publish Powered By : XYZScripts.com
No Result
View All Result
  • Home
  • Exclusives
    • Financial Analysis
    • Corporate Stories
    • Interviews
    • Investigations
    • Metrics
    • Economy
    • Nairalytics
  • Markets
    • Currencies
    • Cryptos
    • Commodities
    • Equities
      • Company Results
      • Dividends
      • Stock Market
    • Fixed Income
    • Market Views
    • Securities
  • Sectors
    • Agriculture
    • Aviation
    • Company News
    • Consumer Goods
    • Corporate Updates
    • Corporate deals
    • Corporate Press Releases
    • Energy
    • Entertainment
    • Financial Services
    • Health
    • Hospitality & Travel
    • Manufacturing
    • Real Estate and Construction
    • Renewables & Sustainability
    • Tech News
  • Business News
    • Budget
    • Public Debt
    • Funds Management
    • Tax
  • Financial Literacy
    • Career tips
    • Personal Finance
  • Lifestyle
    • Billionaire Watch
    • Profiles
  • Opinions
    • Blurb
    • Op-Eds
    • Research Analysis
  • Recapitalization
    • Access Holdings Offer
    • Fidelity Bank Offer
    • GTCO Offer
    • Zenith Bank Offer
  • Login
  • Sign Up

© 2025 Nairametrics