Wizz Air is in trouble amidst the Russian-Ukrainian conflict
The stock value of various airlines is dropping due to the Russian-Ukrainian conflict. One Hungarian airline suffers the biggest loss.
Airlines are losing value due to the current situation. Wizz Air lost 10-11 per cent of its stock value. Other airlines have suffered serious damages as well. Lufthansa’s value dropped by 6 per cent, Air France–KLM by 7.6, IAG that runs British Airways lost 6 per cent. Easyjet lost 4 per cent, and Ryanair lost only 3 per cent of the stock value. – writes vg.hu. This means that the farther the base of the company is from the Ukrainian capital, the less severe their stock market value decrease gets.
The issue is more complex, however. One of the biggest setbacks for airlines is that they have to avoid flying above Ukraine.
KLM canceled all flights to Kyiv on Saturday. Even a Ukrainian company, SkyUp decided that one of their flights would land in Moldova rather than Ukraine. Insurance companies said that they would not cover the costs of the risks, and demanded that the flight be taken to the European Union’s territory. The passengers were transported to Kyiv by bus. Wizz Air is following the changes as well. Air France will not suspend flights, but the staff will not spend the night in the Ukrainian capital city.
Airlines have usually avoided flying above Ukraine since 2014, when a plane of Malaysia Airlines was shot in the Eastern side of the country. It is forbidden to do commercial flights above Eastern Ukraine and Crimea.
Index wrote that other airlines, such as Lufthansa, a Swiss, and Austrian Airlines reorganised their flights as well. The British reinsurance company, Lloyds, has also announced that it will temporarily suspend insurance coverage for aircraft flying in Ukraine’s airspace due to the increased potential of an outbreak of war.
Read alsoThousands of asylum-seekers could leave Ukraine
Source: vg.hu, index.hu
