High airfares and fuel costs may disrupt summer travel, airports body warns
Rising airfares and fuel costs could force airlines to cut more flights and disrupt summer travel plans, according to the global airport industry body Airports Council International (ACI).
Stefano Baronci, Director General of ACI Asia Pacific and Middle East, said higher ticket prices are weakening passenger demand and airfares are unlikely to ease soon.
“The pipe is not the problem, the price is the real concern for airports as this will have an impact on the price of tickets,” Baronci said in an interview.
The warning comes as airlines continue to face pressure from elevated jet fuel prices linked to disruptions around the Strait of Hormuz following the US-Iran conflict. Jet fuel prices crossed $200 per barrel for much of April before easing to around $150 per barrel this month.
Airlines cut flights as fuel costs rise
According to ACI, airlines are facing billions of dollars in additional fuel expenses, leading many carriers to increase fares and cut routes that are no longer profitable.
The industry body estimated that major Middle East airports lost nearly $1 billion in revenue during March and April. Freight traffic in the region also fell 52% during the period.
ACI said high fares and fuel costs now pose a bigger challenge to travel demand than fuel shortages.
The organisation surveyed 28 members operating 88 airports across Asia and the Middle East. Most airports reported having enough jet fuel reserves for 10 to 20 days. However, 60% of respondents said fuel sourcing and kerosene supplies had started tightening by mid-April.
“There is a buffer,” Baronci said. “We don’t see the emergency.”
ACI data showed air traffic activity has started improving, but remains below normal levels. Over the past nine weeks, flight operations averaged only 53% of regular schedules.
Baronci said he remains “cautiously optimistic” about the aviation sector for the rest of the year, but added that recovery will depend on how quickly the conflict is resolved.
Stefano Baronci, Director General of ACI Asia Pacific and Middle East, said higher ticket prices are weakening passenger demand and airfares are unlikely to ease soon.
“The pipe is not the problem, the price is the real concern for airports as this will have an impact on the price of tickets,” Baronci said in an interview.
The warning comes as airlines continue to face pressure from elevated jet fuel prices linked to disruptions around the Strait of Hormuz following the US-Iran conflict. Jet fuel prices crossed $200 per barrel for much of April before easing to around $150 per barrel this month.
Airlines cut flights as fuel costs rise
According to ACI, airlines are facing billions of dollars in additional fuel expenses, leading many carriers to increase fares and cut routes that are no longer profitable.
The industry body estimated that major Middle East airports lost nearly $1 billion in revenue during March and April. Freight traffic in the region also fell 52% during the period.
ACI said high fares and fuel costs now pose a bigger challenge to travel demand than fuel shortages.
The organisation surveyed 28 members operating 88 airports across Asia and the Middle East. Most airports reported having enough jet fuel reserves for 10 to 20 days. However, 60% of respondents said fuel sourcing and kerosene supplies had started tightening by mid-April.
“There is a buffer,” Baronci said. “We don’t see the emergency.”
ACI data showed air traffic activity has started improving, but remains below normal levels. Over the past nine weeks, flight operations averaged only 53% of regular schedules.
Baronci said he remains “cautiously optimistic” about the aviation sector for the rest of the year, but added that recovery will depend on how quickly the conflict is resolved.
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