Summary
Airlines around the world are increasing ticket prices and reducing flight schedules due to a sharp rise in jet fuel costs. The increase in fuel prices is mainly linked to higher crude oil prices caused by a conflict involving the U.S., Israel, and Iran.
Key Facts
- Average global jet fuel prices increased to $197 per barrel by March 20, up from $157.41 two weeks earlier.
- Brent crude oil prices reached $119 per barrel during the week.
- Cathay Pacific and Air France-KLM are adding surcharges to tickets for long-haul flights.
- Air New Zealand raised domestic flight prices by 10 New Zealand dollars and long-haul flights by 90 New Zealand dollars.
- United Airlines plans to cancel 5% of its scheduled flights to manage costs.
- SAS canceled 1,000 flights in April and expects more reductions after Easter.
- Airlines like AirAsia are raising fares but trying to minimize the increase.
