In game mechanics terms, both the airstrike and arty use a simple hitscan test straight up and see if they hit a sky texture. Because smoke is not a solid object it doesn’t block these tests, so both field ops support fire work fine through covert ops smoke.
While it doesn’t do anything against support fire, smoke does a good job cutting down player’s sight. Putting smoke in or just beyond critical chokepoints can allow your team to get through the area without having to fend off everyone that’s covering the area. You can also use smoke to divide a wide area into two zones. This cuts back on the usefulness of long range weapons like the MG42 and sniper rifles since they can’t reliably engage targets through the smoke. Finally, smoke can be a godsend to engies trying to build constructables in exposed areas. Try tossing some smoke at the build crates for the bridge on fueldump. Your engies will still have to dodge arty strikes, but its much easier than dodging arty strikes, MG42s, panzers, and MP40s at the same time. =)
RK