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War Sparks Soaring Jet Fuel Prices, Flight Cuts
6 Apr
Summary
- Jet fuel prices surged nearly $100 since war began.
- Airlines like Ryanair and SAS are cutting or considering flight reductions.
- UK faces significant diesel and jet fuel supply strain.
The war has severely impacted global aviation, causing a sharp rise in jet fuel prices and leading to flight cancellations. Jet fuel costs have nearly doubled since the conflict's onset, with prices reaching $195 at the end of March. This escalating price and diminishing availability are forcing airlines to reassess operations.
Several major airlines are already enacting or considering flight reductions. Ryanair is contemplating route cuts, while Scandinavian Airlines has announced approximately 1,000 flight cancellations. United Airlines plans to prune temporarily unprofitable flights over the next two quarters. Air New Zealand will cut about 5% of its flights in early May, and numerous airlines in Vietnam are reducing services due to fuel shortages and rising costs.
The situation is anticipated to escalate, with projections indicating a doubling of oil losses in April compared to March, leading to greater scarcity of jet fuel and diesel. This trend is already affecting Asia and is expected to spread to Europe in April or May. The UK is identified as the most exposed country in Europe to these tightening fuel supplies.
