How the escalating tensions in Middle East are impacting international flight fare
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%.
Over 40,000 flights worldwide cancelled
According to the reports, the escalating conflict between the US, Israel, and Iran, and the disruption of the Hormuz route, have led to a steady increase in crude oil prices and jet fuel prices, which is also impacting the global aviation industry. The Middle East tensions have also led to the cancellation of over 40,000 flights worldwide.
Biggest oil crisis since the 1970s
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 rise further
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.
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.
Jet fuel prices have doubled in many markets
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.
Many airlines have withdrawn their future financial outlooks
Due to rising jet fuel prices, airlines around the world have not only increased ticket prices but also withdrawn their future financial outlooks. 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 costs to passengers.