Warsaw: The ongoing war in Iran and related tensions in the Middle East region continue to cause challenges for the air cargo sector, the International Air Transport Association (IATA) warned on Monday. "Sharply rising fuel costs, fuel scarcity in parts of the world, and the severe disruption to key cargo hubs in the Gulf are major shifts," Willie Walsh, the director general of the association, said in a press release.

According to Anadolu Agency, Walsh added: "While air cargo has repeatedly proven its resilience in the face of disruption, an early resolution of the war along with a normalization of fuel supply and costs would be in everybody's interest." The IATA noted that air cargo demand grew by 11.2% in February on a yearly basis worldwide, but Walsh mentioned that the outbreak of war in the Middle East makes it difficult to predict how full-year performance will unfold.

The IATA further stated that jet fuel prices rose 1.2% year-on-year in February, while a widening Brent-jet fuel crack spread highlighted continued volatility in refining margins.