The crisis is bound to hit other industries, triggering food shortages and energy lockdowns, Kirill Dmitriev believes
The global aviation shock triggered by the US-Israeli attack on Iran and resulting fuel shortages is a harbinger of even “more severe shocks” that will rock other sectors of the global economy, Kremlin envoy Kirill Dmitriev has warned.
The official, who serves as Russian President Vladimir Putin’s special envoy for investment and economic cooperation, issued the warning on X on Wednesday. Dmitriev reposted an article by the Kobeissi Letter on the dynamics of the aviation sector shrinkage, which has happened at “an unprecedented pace” already so far in May.
Over the past two weeks, airlines worldwide have cut 2 million seats and cancelled some 12,000 flights, according to the outlet. Turkish Airlines and Air China combined accounted for over a million seat cancellations, while Lufthansa took the lead in flight cancellations, accounting for roughly a third of the figure.
“As predicted, the global aviation shock is spreading quickly and is a HARBINGER of the more severe shocks to come in other sectors,” Dmitriev wrote.
Asked by an X user whether a new COVID-style “lockdown 2.0” was coming, the Kremlin envoy responded affirmatively, suggesting the potential restrictions were bound to hit Europe first.
Energy lockdowns in the EU/UK with euphemistic names and food shortages.
On Saturday, US-based low-cost carrier Spirit Airlines announced it was shutting down immediately over the surge in oil prices. It has become the first major carrier to succumb to the crisis, leaving some 17,000 people without work. The elimination of Spirit Airlines is expected to put a further strain on the industry, since the now-defunct airline was the seventh-largest passenger carrier in North America and the region’s largest low-cost carrier.
The aviation shock is expected to continue spreading, with the disruption in the Strait of Hormuz continuing while the US-Israel tandem and Iran have been balancing on the brink of renewing hostilities with no comprehensive peace deal in sight after a month of negotiations. Later on Wednesday, The Daily Mail reported, citing travel experts, that airlines worldwide could cancel up to 85,000 flights if the war in the Middle East continues.
You can share this story on social media:
Read the full article here