Jet fuel prices have risen. They are up as much as 82% since the start of the war in Iran. There is a rumor that creditors and the US government did not bail out Spirit Airlines because the cost of fuel made it financially impossible to revive the carrier.
Ascend Airways has cancelled all its flights effective immediately, blaming the ongoing Middle East war and increase in jet fuel prices for the situation. The airline has filed for administration and surrendered its UK air operator's certificate.
A group of low-cost airline executives, including those from Frontier and Avelo, met with Transportation Secretary Sean Duffy and Federal Aviation Administration chief Bryan Bedford last Tuesday, reportedly requesting $2.5 billion in government assistance. The airlines will give government warrants that could convert into equity stakes in the company.
Lufthansa stated, "As a first immediately effective step, the 27 operational aircraft of Lufthansa CityLine will be permanently removed from the flight programme starting the day after tomorrow, in order to reduce further losses of the loss-making airline."
Airlines in Europe are bracing for fuel supply shocks caused by the war in the Middle East. The severity of the impacts on passengers will be determined in the coming days and weeks depending on whether a recently announced ceasefire between the United States and Iran holds.
United is raising first and second checked bag fees by $10 for customers traveling in the US, Mexico, and Canada and Latin America beginning with tickets purchased Friday, April 3.
Since Iran virtually shut down the vital Strait of Hormuz this week - through which tanker ships carry 20% of the world's supply - crude oil prices have skyrocketed, and jet fuel prices in some markets have reportedly doubled. U.S. jet fuel prices jumped by 58% during the first week of the war, and United Airlines CEO Scott Kirby said the impact on airfares will "probably start quick."
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.
