High fuel prices add major challenges to airlines

Air travel passengers suffer from a significant increase in ticket prices as a result of the rise in jet fuel prices to high levels, forcing airlines to transfer the increase in fuel prices, which doubled within a year, to the cost of tickets that will be borne by travelers in what is described as a new and additional challenge to the aviation sector that has suffered Damage from the Corona epidemic.

The average price of a barrel of oil is $135.70 for 2022, according to the International Air Transport Association (IATA).

Last week, the price was $146.53, up 105% from a year ago.

Some airlines have cut fuel surcharges to zero during the coronavirus pandemic but have brought them back - and even higher - this year.

In Malaysia, AirAsia and Malaysia Airlines reinstated the surcharge in March.

And local media reported that South Korean airlines raised the surcharge to record levels.

The aviation regulator in the Philippines will allow airlines to impose record surcharges from next month..according to Nikkei Asia.Fuel prices have risen with increased demand as a result of the epidemic receding.

In March, it continued to rise after the Ukraine war, which affected oil supplies.

High prices and volatility have made it difficult for airlines to hedge their fuel costs, forcing them to act, said Abhishek Kumar, aviation fuel analyst at Refinitiv.

"It is expected that jet fuel will be traded at a high level until supply and geopolitical concerns subside, until airlines are forced to charge additional fees to recover some of the cost of the inputs," he said.

A report issued by the payment network Mastercard indicated that airline reservations in April were higher than in the same month in 2019, both for business and leisure travel, which represents a milestone in the recovery from the epidemic.

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