Airlines Brace for Years of Elevated Jet Fuel Costs
TAP Air Portugal’s chief executive warned the industry may face three to five difficult years as fuel costs pressure airline plans.
Key takeaways
- TAP Air Portugal CEO Luís Rodrigues warned of a three-to-five-year difficult period for airlines.
- Airlines are weighing fare increases, fewer flights on some routes and delayed capacity growth.
Airline executives do not expect jet fuel costs to return quickly to prewar levels, according to the Financial Times, cited by Ekonomim. TAP Air Portugal CEO Luís Rodrigues warned that the industry could face three to five difficult years.
The conflict in Iran and disruption in the Strait of Hormuz have raised concerns about oil and jet fuel supplies. Airlines are reviewing growth plans as higher fuel bills add to other cost pressures, including aircraft and engine delivery delays and maintenance expenses.
Carriers are considering fare increases, reducing flight frequency on some routes or delaying capacity growth. How much of the cost airlines can pass on to passengers may vary with competition, demand, route distance and fuel-hedging contracts, according to the report.
This article was produced with the help of AI technology. Based on reporting by the outlets listed above.
