Global air carriers have begun to raise tariffs and fuel charges amid a sharp rise in aviation fuel prices caused by the conflict in the Middle East and the closure of part of the airspace, writes Khaleej Times.
According to industry sources, the cost of jet fuel has increased from $85-90 per barrel before the conflict to $150-200 per barrel now. This is critical for airlines: fuel is the second largest expense item after personnel and usually accounts for 20-25% of operating costs.
Several major carriers have already announced an increase in tariffs or fees.: Qantas has announced that it is increasing international fares and considering the possibility of redistributing part of the fleet to European routes, as passengers try to avoid routes through the Middle East.
Air New Zealand has increased the cost of tickets: +10 NZD — on domestic flights; +20 NZD — on short international flights; +90 NZD — on long-haul flights. The company also warned that new price and schedule changes are possible if fuel costs remain high.
Hong Kong Airlines has announced an increase in fuel charges to 35.2%. In some destinations (for example, Hong Kong — Maldives, Bangladesh, Nepal), the fee will increase from HK$284 to HK$384.
Cathay Pacific reviews fuel charges on a monthly basis. For now, fares have been maintained at $72.9 per segment on flights between Hong Kong and Europe and North America, but further changes are possible.
Vietnam Airlines has asked the authorities to temporarily abolish the environmental tax on aviation fuel, as the operating costs of carriers have increased by 60-70%.
Flights between Asia and Europe are becoming more expensive. Due to the closure of part of the airspace, airlines are forced to fly around the region, which increases flight time and fuel consumption.
As a result, fares on Asia—Europe routes have increased dramatically, flight load has increased, and carriers are adding additional frequencies. For example, Qantas reports that its flights to Europe are more than 90% full in March, compared with a typical load of about 75% at this time of year. Cathay Pacific has also announced additional flights to London and Zurich.
Losses are possible in the tourism industry not only in the Middle East, but also in other countries. In Thailand, for example, it has already been calculated that if the conflict drags on for more than 8 weeks, the country may miss 595,974 tourists and about 40.9 billion baht ($1.29 billion) in tourism revenue.
According to the Association of Tour Operators of Russia.
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