Global airlines raise fares, cut routes as fuel costs balloon

Global airlines sounded the alarm on March 17 over soaring jet fuel prices triggered by the US-Israeli war against Iran, warning of hundreds of millions of extra costs, higher fares and cuts to some routes.

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The Austin-Bergstrom International Airport in Texas. Jet fuel prices have soared following the US-Israeli war against Iran. This has emerged as a major challenge for the aviation sector. For instance, the rise in prices has increased Delta Air Lines' costs by as much as US$400 million (S$510 million) in March alone. PHOTO: AFP

(AFP)

Delta Air Lines chief executive Ed Bastian said the dramatic run-up in jet fuel prices had increased the airline’s costs by as much as US$400 million (S$510 million) in March alone.

The industry is moving quickly to pass on higher expenses through fare hikes, he told a J.P. Morgan industrials conference.

American Airlines said it expects a US$400 million increase in first-quarter expenses due to fuel costs.

Among the first to act, Scandinavia’s biggest airline SAS said it is cutting a limited number of flights because of the “sharp and sudden increase” in fuel prices.