Many airlines are not launching new routes due to surge in oil prices: BIAL MD and CEO

The Kempegowda International Airport (KIA), which has already felt the impact of the West Asia conflict, will have to brace for the surge in oil prices in the days to come. The escalation of oil prices has resulted in airlines not launching new routes.

“The biggest significant impact it (West Asia conflict) has had is that the crisis has resulted in a massive escalation of oil prices. Fuel is one of the most significant costs of an airline, and therefore, it is putting a lot of pressure on the airline’s profitability. As a result, many airlines are cancelling routes or not launching new routes,” Hari Marar, managing director and chief executive officer, Bangalore International Airport Limited (BIAL), told The Hindu.

Mr. Marar added that this problem will continue for some more time till the oil prices stabilise. “I think we will see this problem for some more time till the oil prices stabilise. Once the oil prices stabilise, we will see many of these routes,” Mr. Marar added.

However, he clarified that none of the (new) routes, which were supposed to start at KIA, got cancelled due to the crisis.

“None of the routes which were supposed to start got cancelled, but a few routes which we were not expecting at all increased, for instance, British Airways has increased their frequency, Virgin Atlantic, which was operating once a day, is now operating twice a day,” he said. Both these airlines operate on the Bengaluru-London route.

“There are increased frequencies of a few other airlines as well, so all put together, we have seen an increase in international operations because the West Asian carriers are not carrying as many passengers. Many of the European carriers are serving as hubs to the U.S., and this has resulted in an increase in the number of international flights. So, some West Asian carriers’ drop has been compensated by European carriers starting flight operations,” he said.

Mr. Marar cited the example of Swiss International Air Lines (SWISS) announcing the launch of the new non-stop flights between Bengaluru and Zurich.

“We just announced last week the SWISS non-stop flight to Zurich, which will commence operations by October. This is a significant achievement and a great thing for our international growth,” he said.

Meanwhile, Qantas has already announced that it will temporarily suspend direct flights between Bengaluru and Sydney from August to October due to high fuel prices.