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Avolta's CFO says that the Middle East airport closures have hurt Avolta but that April has brought some stability.

Avolta, a duty-free retailer, said that it felt the impact of the Iran War in the first quarter as major hubs for air traffic in the Middle East were closed and flights cancelled.

The U.S. and Israeli war against Iran has sent the global markets into a tailspin. Investors are worried that this conflict will 'create an oil shock, increasing inflation. European airlines have also prepared 'for a difficult spring and summer. Jet fuel prices are now well above $100 per barrel and there is growing concern that flight cancellations could be caused by shortages.

Gerster said, "We've seen a slowdown. Some airports have been closed for a time and traffic has dropped significantly in Dubai as well as in other operations."

He said Avolta has seen a positive trend since April.

Gerster stated that "Kuwait Airport opened up again, and news is coming in from Emirates Airlines who said they had reinstituted 95% of their traffic within the next few weeks and months." There has been positive news since the start of April.

Gerster responded that fuel shortages could be a real problem that would affect the entire sector.

"That could impact the industry." "Everything else is manageable, in one way or another," he said. (Reporting and editing by Milla Nissi-Prussak in Gdansk)

(source: Reuters)