As the fallout from Ukraine continues to widen, British airlines avoid flying over Russia.

• In the aftermath of the attack, airlines have been reaching out to Anchorage Airport in Alaska for information on capacity, echoing the Cold War era when it served as a popular refueling stop for jets restricted from Soviet airspace.
• On Friday, Volodymyr Zelenskiy, the President of Ukraine, pledged to remain in Kyiv as his troops engaged in combat against Russian invaders who were advancing towards the capital, marking the largest European state attack since World War Two.
• The airspace over Ukraine, Moldova, parts of Belarus, and southern Russia near the Ukraine border was shut down during the invasion on Thursday, limiting airlines' routing options.

On Friday, both Virgin Atlantic and British Airways started rerouting their flights around Russian airspace following the ban imposed by London and Moscow on each other's airlines due to Russia's invasion of Ukraine.

In the aftermath of the attack, airlines have been reaching out to Anchorage Airport in Alaska for information on capacity, echoing the Cold War era when it served as a popular refueling stop for jets restricted from Soviet airspace.

As Western nations imposed sanctions on Russian companies, banks, and individuals, airlines, lessors, and manufacturers evaluated the increasing risks of conducting business with Russia.

Bertrand Grabowski, an aviation adviser, stated that it will be more challenging for investors to accept portfolios of aircraft assets that contain Russian airlines due to the current risk aversion. He added that concerns about insurance coverage also play a role in this decision.

On Friday, Volodymyr Zelenskiy, the President of Ukraine, pledged to remain in Kyiv as his troops engaged in combat against Russian invaders who were advancing towards the capital, marking the largest European state attack since World War Two.

The airspace over Ukraine, Moldova, parts of Belarus, and southern Russia near the Ukraine border was shut down during the invasion on Thursday, limiting airlines' routing options.

Russia's Aeroflot had its Thursday evening flight to Moscow cancelled due to potential safety risks, and Britain shut its airspace to Russian airlines as part of a series of retaliatory measures.

Moscow prohibited British airlines from landing at its airports or flying over its airspace.

Adding 15 minutes to an hour to Virgin Atlantic's flights between Britain and India and Pakistan would result from skirting Russia.

Sanctions risks

Emirates announced minor flight route changes to Stockholm, Moscow, St. Petersburg, and some U.S. flights due to airspace closings following Russia's invasion, resulting in slightly longer flight times.

Any aircraft traveling through Russian airspace should have contingency plans in place for closed airspace due to risks or sanctions, according to OPSGROUP, an aviation industry cooperative that shares information on flight risks.

OPSGROUP stated that Russia is unlikely to impose their own sanctions and airspace bans because they do not want Aeroflot to face reciprocal bans.

In response to sanctions from other states, they may react.

The ICAO governing council will discuss the Ukraine conflict at a meeting on Friday, according to a spokesperson.

Since airlines evaluated airspace risks, they have also experienced an increase in oil prices to over $105 a barrel, which is the highest since 2014.

Travel demand is low due to the pandemic, which increases operating costs.

European airlines are likely to experience a long-term impact due to the conflict, as evidenced by a 27% decline in travel from the European Union to Ukraine and Russia following Russia's annexation of Crimea in 2014, according to Jefferies analysts.

Russian sanctions could affect aviation bosses' dealings with Russian firms by disrupting payments to leasing firms and impacting the supply of aircraft parts.

On Thursday, Washington imposed significant export limitations on Russia, restricting its access to various goods, including aircraft components. Despite this, the measures include exceptions for technology required for flight safety, suggesting that the impact on the industry may be limited rather than extensive.

Eric Fanning, CEO of the U.S.-based Aerospace Industries Association, stated that sanctions and export control activities should not impede the requirement to ensure the safety of commercial aircraft.

According to analytics firm Cirium, Russian companies have 980 passenger jets in service, with 777 of them being leased. Out of these leased jets, two-thirds, or 515 jets, are rented from foreign firms, with an estimated market value of approximately $10 billion.