International Flight Fare Hike: The escalating tensions in the Middle East are now directly impacting the common man’s pocket. Indian airlines have increased international flight fares by approximately 15%. Bloomberg reported this information. According to the report, the escalating conflict between the US, Israel, and Iran, and the disruption of the Hormuz route, has led to a steady increase in crude oil prices and jet fuel prices, which is also impacting the global aviation industry.
Major airlines in India, Asia, and around the world have also increased ticket prices, and many are planning to ground their aircraft. Experts say this could be the biggest oil crisis since the 1970s.
Fares may increase further in the future.
According to the report, given the rising prices of jet fuel, or ATF, Indian aviation companies may increase fares further in the coming days. Airlines say they have no option but to increase fares due to rising operational costs.
Jet Fuel Prices Double
The Iran-Israel war, which began on February 28 and disrupted the Strait of Hormuz, has severely disrupted the oil supply chain. Crude oil prices have been steadily rising. Brent crude oil prices have reached $93 per barrel today, compared to around $120 per barrel a day earlier.
More than 40,000 Flights Cancelled
Jet fuel prices in many markets have doubled since the conflict began. Jet fuel prices, which ranged from around $85 to $90 per barrel before the war, have now risen to between $150 and $200 per barrel. More than 40,000 flights have been cancelled worldwide due to tensions in the Middle East.
Due to rising jet fuel prices, airlines around the world have not only increased ticket prices but also revised their future financial outlook. Jet fuel is the largest expense for airlines, accounting for 30% to 40% of total operating expenses.
This sudden change in oil prices has disrupted airline budgets. Major companies like Air New Zealand and Qantas have also made it clear that they will pass on the increased expenses to passengers.
