Carriers struggling with high oil prices
Increases of 50% in Northwest Europe from February 25th to date
The price of oil has risen to its highest level since 2008 following the Russian invasion of Ukraine. The increase had already been underway for several months due to low global crude oil supplies. The situation worsened already during the first communication skirmishes between Moscow and Kiev until it degenerated with the beginning of the armed clash. Suffice it to say that from February 25th until today in Northwest Europe the price of aviation fuel has increased by 50% (1341 dollars per tonne).
All of this is having a severe impact on air carrier costs at a time when airlines are still struggling to recover from the collapse in travel demand caused by the pandemic. Some companies only introduced a fuel surcharge on tickets in the last few days. Other companies increased the fares they already have including Emirates. In addition, some companies have already purchased enough fuel at low prices to be able to cushion the price hike, but other groups are not well covered, including United, American and Delta.
Irish low-cost carrier Ryanair has indicated that it will not introduce additional charges until the summer, but the fuel price increase will cost the company around 50 million Euros over 12 months. Hungarian low-cost carrier Wizz Air said it will be covered by the increases for four months. Others such as the French-Dutch group Air France-Klm, Britain's easyJet and Germany's Lufthansa have decent cover for at least the next quarter.
On the same subject see also the article published by AVIONEWS.
AVIONEWS - World Aeronautical Press Agency