HomeAir LineAlert on European airlines due to fuel prices

Alert on European airlines due to fuel prices

The price of fuel continues to be one of the main headaches for airline accounts. After having to deal with inflation derived from the pandemic, open wars in Russia and Israel have only worsened the situation, leaving disproportionate prices that hit European companies especially hard. (The new threat to airlines: the price of fuel)

One of the latest reports from the International Air Transport Association (IATA) reveals that, currently, fuel rates are around $110 per barrel, practically double what they were two years ago. Thus, Europe exceeds the world average by 5% (about 115 dollars) due to its geographical proximity to the conflict zone and its dependence on refined oil products from Russia. (Fuel rise threatens Wizz Air and Norwegian)

This voracious increase in prices has its genesis in February 2022 with the war in Ukraine. In that month, the price of a barrel of crude oil in Europe rose to 170 dollars (+10% vs global average), but it was not until July when historical highs were reached, exceeding 180 dollars (+8%).

It was not until the months of August and September when the increase could be contained. But it was fleeting, since, in the summer of 2024, a new rise began that placed the price of a barrel at $140. After a new stabilization in September, the outbreak of war in Israel catapulted it upwards again, mainly due to the increase in the costs of maritime transport through the Red Sea, which have doubled since the end of November.

From IATA they regret that “the wars in Ukraine and the Middle East have created a new environment in the aviation fuel market and, since then, prices paid in Europe and the CIS have frequently exceeded the world average.”

That is why they are asking for urgent solutions, since there may be serious consequences, both for companies and consumers. “This regional distortion of fuel prices impacts the competitive landscape of airline operations and may cause regional variations in airline ticket price inflation.”

Source: Preferente

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