Money
The end of cheap flights? Why the war in Ukraine will push the price of airfares
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.