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How could war against Iraq possibly affect the airline industry?
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Fuel prices have greatly increased in recent weeks. War could result in even higher fuel prices. Increases in fuel prices are often passed on to passengers in the form of more expensive tickets. Higher prices may dissuade some from traveling.
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Many airlines are still recording overwhelming losses. The uncertainty of war and its effects on the economies of different countries could lead to more instability in the airlines and result in more job losses, less people flying, etc.
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Airlines are already paying huge sums for additional war risk insurance. War could hardly decrease these costs. Additional costs to airlines usually translate into bad news for the consumer.
The current climate in the airline industry is not entirely promising. In uncertain economic and political times industries such as the airline industry are especially vulnerable because their financial viability seems to rely on healthy, prosperous economic times. Certainly it is not possible to foresee how war will affect the airline industry unless it does occur, but the signs would indicate that war may result in more precarious times for many airlines.
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