Lufthansa was downgraded by Morgan Stanley on risks "fuel costs could stay higher for longer." Airline stocks (IAG, Air France, Lufthansa) were down 2-4% on the day. Reports indicate airlines could ground planes by May if fuel shortages worsen. The sector is the direct casualty of the 6.6% surge in oil prices. Their fuel hedges only "smooth the edges" and do not protect against sustained high prices. Operational disruption from closed airspace compounds the problem. The combination of a severe, persistent cost shock and demand destruction from travel aversion makes the broad commercial aviation sector particularly unattractive and risky in the current environment. An immediate and peaceful resolution to the conflict that causes oil prices to collapse and airspace to reopen fully.