Washington , Oct. 17 (SANA) Executives at major global airlines warned Saturday that the aviation industry is entering a prolonged period of financial challenges, as persistently high jet fuel prices and growing concerns over their impact on global travel demand could force carriers to raise ticket prices and reconsider expansion and growth plans.
In statements reported by the US-based CNN network, airline executives said rising fuel costs have become a “new reality” for the industry, with profit margins expected to remain under pressure in the coming years, particularly as fuel hedging contracts that have helped cushion the impact of energy price fluctuations approach expiration.
Despite continued strong global demand for air travel, airlines are closely monitoring the effects of inflation and rising living costs on consumers’ purchasing power, amid concerns that a potential economic slowdown could weaken travel demand.
To address these challenges, airlines are tightening cost-control measures and reassessing fleet modernization and operational expansion plans, while focusing on improving operational efficiency and investing in advanced technologies, including artificial intelligence applications.
The global aviation industry is facing mounting pressures from volatile energy markets and geopolitical disruptions caused by the war in the Middle East, which is affecting oil supplies and fuel prices, directly driving up operating costs and airfares.
These challenges come as the aviation sector continues to recover from the repercussions of the COVID-19 pandemic, with airlines seeking to strike a balance between sustaining growth and controlling costs amid heightened uncertainty in the global economic environment.
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