The jet fuel price spike is exposing a deep structural vulnerability among low-cost carriers and regional operators.
Restrictions in the Strait of Hormuz caused spot prices to more than double in April, triggering capacity cuts, surcharge introductions, and accelerated fleet retirement programmes across budget and regional carriers with minimal hedging cover.
The International Air Transport Association (IATA) director general Willie Walsh stated that “the cost of jet fuel more than doubled in April,” contributing to a 2.9% decline in global available seat kilometres year-on-year that month and a 3.4% fall in global passenger demand. Middle East carriers bore the sharpest contraction, with demand collapsing 46.6% over the same period.
Fuel now represents between 25% and 30% of total…
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Source www.aviationbusinessnews.com
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