High airfares may become permanent as jet fuel costs soar
Summarised from 2 outlets · Updated 13 Nov, 12:32 · Archive
High airfares could become lasting as airlines contend with soaring jet fuel prices and rising operating costs.
High airfares could become the new norm as airlines contend with soaring jet fuel prices and mounting operating costs, according to Wong Hong, director-general of the Association of Asia Pacific Airlines, which groups 18 airlines in the region.
The industry is operating in a substantially different cost environment from a year ago, when jet fuel cost about $80 a barrel compared with around $180 currently. Fuel accounts for a third of airline operating costs. Wong said carriers were trying to contain ticket prices while protecting their finances, but faced a difficult balance between raising fares and avoiding prices that could drive passengers away.
Major airlines across the Asia-Pacific, Europe and North America have raised base fares, hiked fuel surcharges or added extra fees since late February. Passenger traffic across Asia-Pacific slumped for five consecutive months from April to August, before rebounding marginally in September. Overall passenger traffic in the region grew by 1.9% in the first nine months of the year.
How it is being reported
- High airfares may become new norm as jet fuel costs soar, says Asia-Pacific airline industry chiefHigh airfares could become the new norm as airlines deal with soaring jet fuel prices and rising operating costs.News4Jax · 13 Nov, 11:52
- High airfares may become new norm as jet fuel costs soar, says Asia-Pacific airline industry chiefHigh airfares could become the new norm as airlines deal with soaring jet fuel prices and rising operating costs.Clickorlando · 13 Nov, 11:52
In this story: Association of Asia Pacific Airlines · Wong Hong · Asia-Pacific · Europe · North America
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