"Jet fuel alone accounts for somewhere between 25 and 35 percent of airlines' costs. The next stop is higher ticket prices. It's already happening, to some degree. Several airlines, including Air Asia and Hong Kong Airlines, have explicitly said they're adding to their usual fuel surcharges."
"When [oil price] goes up this rapidly, airfares go up. They also come down, by the way, when fuel goes back down. Because no one has a crystal ball, what this all means for travelers is up in the air."
"Airlines set initial schedules, routes, and ticket prices months out, which means the money they're losing today to high costs might only be recouped through ticket sales for flights well into the future."
Jet fuel prices have doubled following disruptions in shipping lanes caused by the Iran conflict, significantly impacting airline operations. Fuel represents 25-35% of airline costs, making price increases inevitable. Airlines including Air Asia and Hong Kong Airlines have already implemented fuel surcharges, while domestic US ticket prices have risen. Industry experts anticipate several more weeks of elevated fuel prices before the full economic impact becomes clear. Airlines set schedules and prices months in advance, meaning current losses may only be recovered through future ticket sales. Behind the scenes, airlines are optimizing operations through fuel efficiency measures and adjusting ticketing strategies to manage costs.
Read at WIRED
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