The war in Ukraine is impacting the entire world, typically when it comes to the price of oil – and as prices rise, we could be saying goodbye to cheap airfares
For the past two years during the COVID pandemic, nervous travelers have been putting off their plans until 2022. But just as the world recovers from the pandemic, Russia invades Ukraine – and it’s sending the price of brent crude skyrocketing.
Airlines passengers are bracing for steeper fares as the Russian invasion of Ukraine forces the price of jet fuel to the highest in 13 years.
Some airlines are warning prices could skyrocket, just as passengers are returning to the skies.
Airlines have been on life support, some didn’t get through the pandemic
Those carriers that clawed their way through are suffering a new spread – expensive jet fuel overshadowing the recent jump in travel demand.
Russia’s invasion of Ukraine has set off a global panic around fuel supplies. Costs rose 32% last week alone – 50% higher so far this year.
Fuel is the second-highest expense for an airline, right behind the cost of staff
Airline stocks have been among the hardest industries hit in recent weeks as markets were thrown into chaos.
Australia’s flag carrier warns the airline will be forced to raise fares by as much as 7 percent as the price of oil hits $120 a barrel.
While Qantas and other airlines have a strong hedging strategy for fuel – that can only last for so long before passengers have to be slugged with even higher fares after June.
Governments and competition regulators were that climbing jet fuel prices will now set back the recovery of the battered travel industry.
Some airlines are now hoping sustainable aviation fuel could be the answer, building on tests that have been conducted in recent years.
German airline Lufthansa is set to operate the first CO2 neutral cargo flight by using Sustainable Fuel.
But there are no cheap options, as passengers either face higher prices or long waits to get back into the air.
Real reason bosses want employers back in the office
As the world gradually recovers from the pandemic, employers are increasingly pushing for their staff to return to the office after years of remote work.
The driving force behind this push is the sharp decline in commercial property values, which has left many businesses concerned about their real estate investments.
Commercial property values have plunged in the wake of the pandemic, with many companies downsizing or reconsidering their office space needs.
This has put pressure on employers to reevaluate their remote work policies and encourage employees to return to the office. #featured
Businesses cash in on Black Friday sales
Black Friday, the annual shopping frenzy, has become a global phenomenon rooted in economic strategies.
Retailers deploy various tactics to lure consumers, creating a win-win scenario for both shoppers and businesses.
The concept of Black Friday traces its roots to the United States, where it marks the beginning of the holiday shopping season. Retailers offer significant discounts on a wide range of products to attract a massive customer influx. This strategy, known as loss leader pricing, involves selling a few products at a loss to entice customers into stores, hoping they will buy other items at regular prices.
Retailers also employ the scarcity principle by advertising limited-time offers and doorbuster deals. This sense of urgency compels consumers to make quick decisions, boosting sales.
Furthermore, online shopping has revolutionized Black Friday economics. E-commerce giants use data analytics to customize deals, targeting individual preferences. Cyber Monday, the digital counterpart to Black Friday, capitalizes on the convenience of online shopping. #featured
Australian inflation figure finally starts with a 4
Australia’s October inflation figures have surprised economists, as consumer prices rose at a slower pace than anticipated.
This slowdown was primarily attributed to a significant drop in goods prices, contributing to the nation’s subdued economic climate.
The Consumer Price Index (CPI) for October indicated a modest 0.4% increase, falling short of the 0.7% forecasted by analysts. On an annual basis, inflation stood at 2.1%, below the Reserve Bank of Australia’s target range of 2-3%. This unexpected deceleration is likely to affect the country’s monetary policy decisions in the near future.
Goods prices, including essential items like fuel and food, recorded a notable decrease of 0.8%, mainly due to supply chain disruptions and global economic uncertainties. Meanwhile, services prices continued to rise, albeit at a slower rate, driven by higher wages in some sectors.
This unexpected dip in inflation raises questions about the overall health of the Australian economy and the central bank’s strategies to combat it. Policymakers now face the challenge of balancing economic growth with the need to manage inflation effectively. #ticker today #featured
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