Global Airlines Raise Fares Amid Surging Jet Fuel Costs
Global airlines are hiking fares and cutting flight capacity to offset surging jet fuel costs. Many carriers have also lowered their annual profit forecasts.
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The global aviation industry is grappling with a sharp rise in jet fuel prices following the escalation of conflict between the United States, Israel, and Iran. Prices for jet fuel have climbed from approximately $85-$90 per barrel to as high as $150-$200 per barrel in recent weeks. With fuel accounting for nearly a quarter of operating costs, airlines are being forced to raise ticket prices, cut capacity, and adjust their financial projections.
In Europe, AEGEAN AIRLINES of Greece has noted that suspended flights and fuel volatility will impact its first-quarter results.
