Airlines' rising fuel costs could dampen your holiday plans
At the end of FY18, airlines saw a 26 percent rise in jet fuel costs; fare hike imminent
By
Prefer us on GoogleLast Updated: May 23, 2018, 11:34 IST1 min
Advertisement
Advertisement
At the end of fiscal 2018, airlines saw a 26 percent rise in jet fuel costs, which has impacted their profit numbers, particularly in the January to March quarter. This, even as domestic air passenger traffic in February grew by a record 28 percent year-on-year. The growth was fuelled by capacity addition and competitive fares in the 15-day booking period prior to travel.
Given the environment, higher airfares are the order of the day and that’s likely to dampen the spirits of holiday-goers. Already, in the United States, the world’s biggest aviation market, carriers like Spirit Airlines have raised fares by $3. “Fares are too low for oil prices this high,” said Doug Parker, CEO, American Airlines, in a recent earnings call. “Over time you’ll see them adjust.”
First Published: May 23, 2018, 11:34
Subscribe NowI write on India's well-established entrepreneurs and corporate houses, covering a range of sectors. In a nutshell, I'm the Jack of all business news beats. In addition, I am the go-to reporter for av
- Home /
- Leaderboard /
- Airlines-rising-fuel-costs-could-dampen-your-holiday-plans
Advertisement