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View all search resultsAsh from Anak Krakatau, which sits halfway between Java and Sumatra islands, has blanketed Jakarta and several surrounding areas since it erupted late on Friday, leading to the closure of the airports for safety reasons.
The weak results underscored the post-pandemic fragility of China's aviation sector, as the trio confronted what China Eastern described as a profit environment "severely undermined" by disrupted international routes and persistently elevated jet fuel prices linked to the Middle East conflict.
The results exposed a squeeze at the heart of the low-cost model: Fuel makes up a larger share of expenses than at full-service airlines, but price-sensitive passengers leave carriers less scope to lift fares without weakening demand.
Global airline chiefs open their annual summit in Rio de Janeiro on Saturday facing a sharper test of the industry's post-pandemic recovery, as the Iran war drives up fuel costs and disrupts airspace while carriers try to cushion the blow with higher fares and tighter capacity.
Bankrupt discount carrier Spirit Airlines ceased operations on Saturday, the industry's first casualty linked to the Iran war, after failing to secure creditor support for a US government bailout plan. All flights have been canceled, the statement said, asking passengers not to go to the airport.
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