"McNally stated, 'In a way, of all the refined products gasoline, diesel, fuel oil jet fuel was the hardest hit. It's the one that we tend to keep in lowest inventory at these airports, and especially Europe depends a lot on imports.'"
"'We're seeing airlines cancel flights, what we call demand reduction. They're just canceling unprofitable flights, even the ones that are still in operation. So the trauma is biggest in the airline sector, and Spirit is perhaps one manifestation of that,' McNally explained."
"'Unfortunately, look, the price we pay at the pump follows the global crude oil price more or less, with a several week lag, and global crude oil prices are heading higher,' McNally warned."
"'I think, unfortunately, as we get to Memorial Day or certainly by Fourth of July, the way things are going, we will see those levels,' referring to the potential rise in gasoline prices to all-time highs."
High jet fuel prices, exacerbated by the Iran war, have severely affected Spirit Airlines, leading to flight cancellations and financial difficulties. Energy expert Bob McNally noted that jet fuel is particularly vulnerable due to low inventory levels at airports, especially in Europe and Asia. While some argue that Spirit's issues predate the war, McNally emphasized that the surge in energy prices has been detrimental to the airline industry. Current gasoline prices are averaging $4.43 per gallon, with expectations of further increases as global crude oil prices rise.
Read at www.mediaite.com
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