Airline Chiefs Gather in Rio as Jet Fuel Stays Above $140 a Barrel
Updated
Updated · The Guardian · Jun 6
Airline Chiefs Gather in Rio as Jet Fuel Stays Above $140 a Barrel
3 articles · Updated · The Guardian · Jun 6
Summary
Rio de Janeiro hosts the IATA annual meeting this weekend with airlines still operating largely full schedules despite fears that the US-Israel-Iran conflict could trigger a summer fuel crunch.
Jet fuel remains above $140 a barrel, up from just over $80 at last year's summit, and Cirium says every $1 increase adds nearly $3 billion to airlines' annual fuel bill.
About 6% of global seats were cut over the past month, yet European carriers have mostly maintained peak-season flying as new kerosene supplies from the US and West Africa eased shortage fears.
The EU's transport commissioner said Friday there is currently no jet fuel shortage in Europe, though analysts still question how long passengers will absorb higher fares if the war drags on.
The Rio summit also highlights wider strains on the industry, from pressure on budget carriers such as easyJet and IndiGo to a fading focus on sustainable aviation fuel as costs dominate.