‘Air travel won’t be cheap’ – rising jet fuel prices threaten recovery of air travel

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Global jet fuel prices have surged to a near 14-year high along with a surge in crude oil on fears of a supply shortage, leaving airlines and travelers hit by sharp increases in costs as well as rising costs. Air travel begins to recover from Covid-19 restrictions.

Prices rose to their highest levels since 2008 as supply lagged to restore global demand and when the United States banned Russian oil imports following Moscow’s invasion of Ukraine.

Global crude benchmark Brent has risen 26pc to more than $120 a barrel since Russian forces invaded Ukraine on 24 February, sparking a global scramble of importers to secure options. substitute for Russian crude oil under the threat of sanctions.

The race in crude prices has pushed crude prices higher and will be affected if crude supplies tighten, with Singapore’s JET-SIN jet fuel prices surging higher than Brent since 24 February, reaching $150/barrel for the first time since July 2008.

Jet fuel prices have also increased similarly in Europe and the US, leaving global carriers already hit by Covid-19 over the past two years with higher costs due to fuel surcharges and fares. get a raise.

In turn, price hikes that threaten to undermine the air travel recovery have gained momentum as international borders ease.

“Traveling (by air) won’t be cheap from now on. With inflation all over the country, most people have pocket money,” said a Singapore-based jet fuel trader. farmers, less disposable income”.

She said many travelers will limit their plans to “essential” travel and said pandemic-related restrictions – with many still requiring negative Covid tests – increase adding uncertainty to those traveling.

Fuel surcharges were a feature of tourism as oil prices rose in 2007/2008, with Aer Lingus having a charge up to €100 on flights to San Francisco and LA.

Global airline capacity fell 0.1 percentage point this week to 82 million seats, and remains 23 percent lower than the corresponding pre-pandemic week, according to aviation data firm OAG. aeronautical data company OAG.

Total scheduled airline capacity in Northeast Asia in the week to Monday fell 4.5 points from the previous week, more than any other region, while international arrivals and departures in region is still 88% lower than the corresponding week in 2019.

Domestic flight schedules in the US have trended past 2019 levels this spring, but higher fuel and ticket costs now threaten to slow that momentum.

“Airlines will again be pushed back to the credit line and again see suppliers less willing to offer unsecured terms. We could see some more casualties later on. Covid right now, just as the recovery looks better,” said a senior London-based trade source.

https://www.independent.ie/life/travel/travel-news/travelling-by-air-is-not-going-to-be-cheap-jet-fuel-price-surge-threatens-air-travel-recovery-41427266.html ‘Air travel won’t be cheap’ – rising jet fuel prices threaten recovery of air travel

Fry Electronics Team

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