Montreal, March 17 (SANA) Global jet fuel prices have surged to unprecedented levels, reaching between $150 and $200 per barrel, amid disruptions to oil supplies and shipping routes, driving up airfares globally.
The International Air Transport Association (IATA) said the global average price reached about $175 per barrel in the week ending March 16, marking an 11 percent increase compared to the previous week, as reported by Al Jazeera.
Forbes said rising fuel costs, which account for 20 percent to 25 percent of airline operating expenses, have pushed carriers to raise ticket prices or introduce fuel surcharges, with airlines including Cathay Pacific and Qantas taking such measures. CNBC reported that these increases are being gradually implemented across multiple markets.
Economic reports attribute the surge to disruptions in global oil supplies, particularly following shipping disruptions in the Strait of Hormuz, a key global energy chokepoint, placing additional pressure on airlines.
The British Chambers of Commerce warned that closures of parts of Middle Eastern airspace could force longer flight routes and increase operating costs.
Airlines have lost billions of dollars in market value in recent weeks, Bloomberg reported, while analysts at UBS expect sector profits to decline in the first quarter of the year, underscoring the scale of challenges facing the global aviation industry.
F.J.
