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Jet Fuel Prices and Airfares Are Rising but Travelers Are Still Booking Flights
Major U.S. airlines face $400 million in fuel cost increases but offset losses with record bookings and strong ticket demand, boosting revenue this year, executives said.
- This past week, Delta Air Lines, American Airlines and United Airlines reported record bookings this year, helping absorb roughly $400 million in added fuel costs, Delta CEO Ed Bastian said.
- Price data from Argus Media shows jet fuel rose to $3.93 per gallon from $2.50 t after the war began on Feb. 28, straining supplies around the Strait of Hormuz.
- U.S. carriers are mostly absorbing fuel cost swings by folding them into base fares and add-on fees, while some use fuel hedging that covers only part of their needs.
- Major carriers say major U.S. airlines do not expect a significant dent in quarterly profits despite jet fuel adding hundreds of millions to expenses, but industry analysts say fare increases are inevitable.
- Robert Isom, American CEO, said eight of the carrier's best 10 booking days happened this year and expects high demand to continue through April and May, while American and United reported similar figures Tuesday at the J.P. Morgan Industrials Conference.
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Buffalo News+21 Reposted by 21 other sources
Jet fuel prices and airfares are rising but travelers are still booking flights
Major U.S. airlines say they're not expecting a significant dent in quarterly profits despite soaring jet fuel costs tied to the war in the Middle East.
·Buffalo, United States
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Jet fuel prices and airfares rising, but travelers still booking flights
Major U.S. airlines say they are not expecting a significant dent in quarterly profits despite soaring jet fuel costs tied to the war in the Middle East adding hundreds of millions of dollars in expenses.
·Toledo, United States
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The Middle East war will change routes and make airfares more expensive. It may take years before the airline market returns to normal.
·Oslo, Norway
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The Middle East war will change routes and make airfares more expensive. It may take years before the airline market returns to normal.
·Oslo, Norway
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Total News Sources25
Leaning Left2Leaning Right1Center20Last UpdatedBias Distribution87% Center
Bias Distribution
- 87% of the sources are Center
87% Center
C 87%
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