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European airlines face turbulence as fuel costs and disputes disrupt operations

From cancelled flights to privatisation pullouts, Europe's aviation sector is under pressure. Can airlines weather the storm of rising costs and political shifts?

The image shows a large group of people sitting in an airport, some of them holding bags and...
The image shows a large group of people sitting in an airport, some of them holding bags and papers, while others are standing. There are boards with text in the background, as well as mannequins with dresses, and lights on the ceiling. It appears to be a protest at the airport.

European airlines face turbulence as fuel costs and disputes disrupt operations

Dear readers,

Over the past week, the aviation industry once again found itself at the center of major political decisions and economic upheaval. This time, the spotlight was on critical issues surrounding airport expansion, financing, and market consolidation—key themes that underscore just how closely politics and the sector are now intertwined. Below, we summarize the most important developments within the web of political, legal, and societal frameworks shaping the industry. Here are this week's top stories:

  • Why Munich's new Green-led city government is likely to cement the blockade of the third runway
  • How soaring kerosene prices amid the Middle East conflict are triggering flight cancellations, ticket price hikes, and supply shortages—and what this means for passengers and airlines
  • Why IAG appears to be pulling out of the bidding for TAP Air Portugal and what this means for the ongoing privatization process

We also examine the escalating dispute between Airbus and Pratt & Whitney over engine deliveries, fresh debates over state aid for SAS in Denmark, and the German business travel sector's struggle with bureaucracy and the lingering effects of the pandemic.

We hope you find this week's reading both insightful and engaging. Wishing you a great week ahead!

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