High Airfares May Become New Norm as Jet Fuel Costs Soar, Says Asia-Pacific Airline Industry Chief
- On Friday, Association of Asia Pacific Airlines leaders gathered in Kuala Lumpur to address expiring fuel hedges and elevated jet fuel prices threatening airline financial stability across the region.
- Jet fuel now accounts for about 33 per cent of operating costs, a sharp rise from the 25 per cent share the International Air Transport Association reported last year before prices surged.
- Airlines face a "very, very tricky dilemma" as older hedge contracts expire, forcing carriers to choose between locking in current high prices or risking further volatility, Wong said.
- Carriers are implementing fuel surcharges and fare increases to offset costs, though executives warn "there has to be a breaking point where passengers will say no."
- Industry leaders describe elevated costs as a "new normal," yet remain optimistic about future travel and cargo demand, viewing persistent disruptions as a lasting feature of operations.
22 Articles
22 Articles
High airfares may become new norm as jet fuel costs soar, says Asia-Pacific airline industry chief – WTOP News
KUALA LUMPUR, Malaysia (AP) — High airfares could become the new norm as airlines contend with soaring jet fuel prices and mounting operating costs, the Association of Asia Pacific Airlines’ chief said Friday. Wong Hong, director-general of the association grouping 18 airlines in the region, said carriers were trying to contain ticket prices while protecting...
High airfares may become new norm as jet fuel costs soar, says Asia-Pa
KUALA LUMPUR, Malaysia (AP) — High airfares could become the new norm as airlines contend with soaring jet fuel prices and mounting operating costs, the Association of Asia Pacific Airlines’ chief said Friday. Wong Hong, director-general of
The Toronto Star
High airfares may become new norm as jet fuel costs soar, says Asia-Pacific airline industry chief
KUALA LUMPUR, Malaysia (AP) — High airfares could become the new norm as airlines contend with soaring jet fuel prices and mounting operating costs, the Association of Asia Pacific Airlines' chief said Friday.
Channel News Asia
Asia-Pacific airlines brace for prolonged fuel pain as hedging cover thins
Fuel now makes up about 33 per cent of airlines' operating costs, says director general of the Association of Asia Pacific Airlines Wong Hong.
Asian Airlines Face a $148-a-Barrel Fuel Gamble
Asian airlines are facing expiring jet fuel hedge contracts and need to make a choice about whether to hedge at exorbitant prices or risk them going even higher without a hedge. Citing industry executives, Reuters reported today that jet fuel prices in Asia are currently about 75% higher than they were before the war in the Middle East started, and that the chance of that changing dramatically in the observable future appears to be slim. “Our vi…
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