Major European airlines are warning that they will have to pass rising fuel costs on to passengers. Jet fuel prices have increased rapidly because of the ongoing war in the Middle East. Oil tankers remain stuck in the Persian Gulf, a region that supplies a large share of global kerosene.
Although most European carriers have hedged their fuel purchases to absorb short‑term price spikes, the rising costs will still lead to higher ticket prices, according to Ryanair CEO Michael O’Leary.
Fuel is one of the largest expense categories in aviation. With Brent crude now trading over 110 dollars per barrel, more airlines are being forced to introduce fuel surcharges or even cancel certain flights.
Lufthansa CEO Carsten Spohr says his company earns an average profit of 10 euros per passenger. “There is no way to absorb additional costs”, he said.
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