High jet fuel costs put pressure on airline ticket prices



As the Ramadan lull approaches, airlines are also dealing with another worry: sky-high jet fuel prices that have sent costs up to near-record levels this year.

The price of a barrel of jet fuel has risen more than 50 per cent from a year ago to US$132 (Dh484). And airline executives say fuel prices could remain at sustained high levels, making air travel more expensive.

"Fundamentally, everyone is now living in a world of permanently high fuel prices," said Julie Southern, the chief commercial officer of Virgin Atlantic. "At some point there is going to be a need to fundamentally re-price air travel."

Airlines would now have to consider a "sensible and sustainable" price for passengers, she said. For two decades, air travellers have benefited from lower fuel prices and increased airline competition.

"Core prices haven't changed very much if you look at the long term," she said. "In the sweep of history, over the last 10, 15, 20 years, passengers have had a very good deal. They've seen prices tumble."

Airlines will spend $60 billion on fuel this year, and local airlines were quick to point out that this was a global problem.

Emirates Airline said last week fuel accounted for 35 per cent of its operating costs, with its fuel bill rising 40 per cent in its the fiscal year ending in March, compared with the previous year.

"The pressure is on everybody," said Adel Ali, the chief executive of Air Arabia. "When fuel goes up the ticket prices have gone up as well globally."

As fuel costs rise, airlines are forced into a difficult balancing act of trying to raise ticket prices to cover these extra costs without pricing themselves out of the market. "Airlines cannot raise ticket prices more than what the market takes and what the competition is," Mr Ali said.

"Right now we are in a peak time of the year, so tickets prices do go up. Some places you reduce prices to stimulate business and in some markets, you raise prices."

The summer travel season was strong this month and last month, with high aircraft occupancy rates, he said.

Virgin Atlantic's London to Dubai service has also been strong this summer, Ms Southern said. Flights were more than 80 per cent full on average, including 90 per cent in the economy cabin, she said.

"Revenue has been growing in all cabins, so we are really pleased on that."

NO OTHER LAND

Director: Basel Adra, Yuval Abraham, Rachel Szor, Hamdan Ballal

Stars: Basel Adra, Yuval Abraham

Rating: 3.5/5

In numbers: PKK’s money network in Europe

Germany: PKK collectors typically bring in $18 million in cash a year – amount has trebled since 2010

Revolutionary tax: Investigators say about $2 million a year raised from ‘tax collection’ around Marseille

Extortion: Gunman convicted in 2023 of demanding $10,000 from Kurdish businessman in Stockholm

Drug trade: PKK income claimed by Turkish anti-drugs force in 2024 to be as high as $500 million a year

Denmark: PKK one of two terrorist groups along with Iranian separatists ASMLA to raise “two-digit million amounts”

Contributions: Hundreds of euros expected from typical Kurdish families and thousands from business owners

TV channel: Kurdish Roj TV accounts frozen and went bankrupt after Denmark fined it more than $1 million over PKK links in 2013 

Results:

Women:

1. Rhiannan Iffland (AUS) 322.95 points
2. Lysanne Richard (CAN) 285.75
3. Ellie Smart (USA) 277.70

Men:

1. Gary Hunt (GBR) 431.55
2. Constantin Popovici (ROU) 424.65
3. Oleksiy Prygorov (UKR) 392.30

MATCH INFO

Chelsea 1 (Hudson-Odoi 90 1')

Manchester City 3 (Gundogan 18', Foden 21', De Bruyne 34')

Man of the match: Ilkay Gundogan (Man City)

The Disaster Artist

Director: James Franco

Starring: James Franco, Dave Franco, Seth Rogan

Four stars