Jamie Freed and Allison Lampert

(Reuters) – Alaska’s Anchorage Airport stated that airlines are now asking about their capacity in the event routes to Russia are affected by the Ukraine crisis. This is a clear sign of the growing impact on the aviation industry.

The airport was used as a refuelling point for long-haul flights by Western airlines during World War II, when they couldn’t get into Russian airspace.

Japan Airlines cancelled Thursday’s evening flight from Tokyo to Moscow due to safety concerns. Britain, however, closed its airspace for Russian airlines (including Aeroflot) as the conflict’s effect on the industry expanded beyond Ukraine.

On Thursday, Ukrainian forces were facing Russian invaders from all three sides. This was after Moscow launched the largest assault on an European state since World War Two.

As a result, airlines have a smaller range of routes options.

Emirates stated that it made some minor changes in its routing to Stockholm, Moscow and St. Petersburg, as well as to some U.S. flight routes, which resulted in slightly longer flight times.

OPSGROUP is an aviation industry cooperative which shares information about flight risks. It stated that any aircraft traveling through Russian airspace must have plans for contingency in case of closed airspace because of sanctions or risks.

According to OPSGROUP, Russia is unlikely to initiate airspace and sanction bans of their own because they don’t want Aeroflot to be subject to reciprocal bans.” They may respond to other sanctions.

The TASS news agency reports that Russia’s aviation authority stated it was open to responding to Britain’s flight ban by taking similar measures.

According to a spokesperson, the governing body of the International Civil Aviation Organization, a U.N. organization, will be discussing the Ukraine conflict during a meeting that takes place on Friday.

Lufthansa, Germany said Thursday that it did not feel the need to cancel any flights to Moscow.

The conflict has caused a rise in oil prices, which have now risen above $105 per barrel for the first time since 2014. Airlines were assessing the risks to their airspace. This raises operating expenses at a moment when travel demand is low due to the pandemic.

Analysts at Jefferies said European airlines would also be likely to experience a more long-term decline in demand as a result of conflict. They cited a 27% decrease in travel from Europe to Ukraine over two years since Russia annexed Crimea.

Concerned about Russian company dealings, aviation leaders are also concerned. The imposition of sanctions could cause disruption in payments to leasing companies and impact the availability of parts for aircrafts.

According to Cirium, Russian airlines have 980 passenger planes in use, while 777 of these are leased. With an estimated value of $10 billion, 2/3, 515, are rented to foreign firms.

Russia’s market in Russia has performed well during the pandemic. The country saw a 7.5% drop in capacity compared to 2020. According to OAG travel data firm, Russia was one of the top performers worldwide.

On Thursday, the Biden administration announced significant export restrictions for Russia, which will severely restrict its access to products and parts.

However, the measures include provisions for technologies necessary to flight safety. This raises the possibility that the impacts on aerospace might be more limited than broad.

Eric Fanning (chief executive, Aerospace Industries Association), a U.S.-based Aerospace Industries Association said that industry is currently reviewing the restrictions on export and would adjust to satisfy the new requirements.