Airline ticket prices forecast to climb higher
Air travel could become even more expensive in the coming months, CNBC reported this week, citing top aviation executives.
A decline in US refining capacity resulting in more expensive jet fuel, and financial troubles for the airlines due to the pandemic, were given as reasons for the potential price increases by director general of the International Air Transport Association (IATA), William Walsh, who gave an interview to CNBC on Wednesday.
The US’ capacity to refine crude oil into fuel and other products fell to its lowest level since 2014 this year, according to the federal government’s annual refinery capacity report released in June. The drop was attributed to refinery closures in the country due to various factors in recent years.
In the US, airline ticket prices shot up by 25% in the past year, the biggest annual jump since 1989, and have continued to climb higher this year.
Another factor driving up flight costs globally is the fallout from the conflict between Russia and Ukraine, Qatar Airways CEO Akbar Al Baker said, as quoted by CNBC.
Al Baker said the conflict will “fuel inflation, putting more pressure on the supply chain,” and also lead to instability in the price of oil.
Also, in recent months, airlines have had to use alternative routes to avoid flying over Ukraine and Russia, and according to travel portal ViaTravelers.com, flights from London to Delhi, for example, now have to make a detour, adding several extra hours of flight time and fuel.
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