[SINGAPORE] The oil shock currently faced by the global airline industry is not an existential threat and falls “nowhere near” the crisis of the Covid-19 pandemic, said International Air Transport Association (Iata) director-general Willie Walsh on Wednesday (Apr 8).

Speaking at a press conference at the Iata World Data Symposium in Singapore, he dismissed the notion that airlines are in “survival” mode following the recent spike in oil prices.

Oil prices have risen by about 140 per cent since the Middle East conflict broke out on Feb 28, with the destruction of oil infrastructure in the region and closure of the vital Strait of Hormuz.

Walsh’s comments came after airline CEOs earlier in the day warned that jet fuel prices could take months to stabilise.

“This is not a crisis that is anywhere close to what we experienced in Covid,” he said. “I don’t think it’s an existential challenge for any airlines out there. If there are failures, those airlines are likely to have failed regardless of whether the oil price had gone up or not.”

Among the levers the industry could use to navigate the spike in costs are higher ticket prices and flight cuts, said Walsh, who is set to become the CEO of Indian carrier IndiGo in August.