Airlines are facing higher air fares due to the rising cost of jet fuel, with carriers cancelling more flights this month amid concerns over the Iran war and the closure of the Strait of Hormuz. Director general of the International Air Transport Association, Willie Walsh, warned that airlines will not be able to continue 'absorbing the cost' of disruption caused by the closure of the Strait of Hormuz in the long term.
Higher air fares are 'inevitable', an airlines chief has said, as carriers cancel more flights this month amid jet fuel price fears due to the Iran war.
Director general of the International Air Transport Association, Willie Walsh, said airlines will not be able to continue 'absorbing the cost' of disruption caused by the closure of the Strait of Hormuz in the long term. He told the BBC there was no need to panic over potential jet fuel shortages but warned that rising fuel prices would inevitably feed through into higher ticket prices. Mr Walsh said: 'There's just no way airlines can absorb the additional costs they're experiencing.
'There may be some instances where airlines will discount to stimulate some traffic flow… but over time it's inevitable that the high price of oil will be reflected in higher ticket prices. While Mr Walsh did not think there would be widespread cancellations, he added: 'I think the concern will be that if sufficient alternative supply isn't sourced, there may be some shortages when we get into the peak summer period.
' Last week British Airways' parent company IAG warned its profits will be hit as it expects to spend about two billion euros (£1.72billion) more than planned on fuel this year. Chief executive Luis Gallego said IAG does not believe there will be 'any interruption for the summer' in terms of jet fuel supplies. Willie Walsh, director general of the International Air Transport Associatio
Air Fares Higher Air Fares Inevitable Airlines Cancel More Flights Jet Fuel Price Fears Iran War Strait Of Hormuz Director General International Air Transport Association Willie Walsh British Airways IAG Luis Gallego Transport Secretary Heidi Alexander Summer Holiday Plans Fuel Imported From America UK Refineries Temporary Rule Change Aviation Analytics Company Cirium Peak Summer Months Schedule Reductions Airline Cancellations European Airlines Airports Tour Operators Blockades Gulf Supplies Jet Fuel Sebastian Ebel CEO Of TUI Tour Company Discussion On Fuel No Shortages Impact In The Summer Except Prices
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Turkish FM warns against use of Strait of Hormuz as 'weapon' amid regional tensionsForeign Minister Hakan Fidan warns that disruptions in the strategic waterway would threaten both regional stability and the global economy.
Read more »
UN Official Warns of Massive Hunger and Starvation if Fertilizers Not Allowed Through Strait of HormuzA United Nations official has warned that tens of millions of people could face hunger and starvation if fertilisers are not soon allowed through the Strait of Hormuz, a strategic waterway through which a third of the world's fertilisers normally pass. Iran has had the waterway in a chokehold for months in retaliation for the war launched by the US and Israel on February 28, disrupting a trade critical for farmers around the world.
Read more »
Strait of Hormuz tensions threaten to push gas past $5 a gallon by JuneJustin Boggs is a writer for the E.W. Scripps company. Justin covers anything from politics to sports and entertainment.
Read more »
Iran Is Using Tiny ‘Mosquito’ Boats to Shut Down the Strait of HormuzIran’s traditional naval fleet has been almost completely destroyed by US-Israeli raids. But Iran’s military has put a fleet of small vessels on the water that is crippling every passageway.
Read more »