"Jet fuel prices have risen. They are up as much as 82% since the start of the war in Iran. There is a rumor that creditors and the US government did not bail out Spirit Airlines because the cost of fuel made it financially impossible to revive the carrier."
"It is almost certain that carriers cannot raise rates enough to offset an 82% increase in fuel. Sharply higher ticket prices will kill demand. Carriers can't lose money on most of their flights and make it up in volume."
"According to the AP, 'Europe has maybe six weeks or so of remaining jet fuel supplies,' warning of possible flight cancellations 'soon' if oil supplies remain blocked by the Iran war."
JetBlue's website indicates options for rebooking flights to nearby airports due to a jet fuel supply crisis affecting many major US cities. Airlines are cutting routes to less trafficked cities, but the issue extends to larger markets. Jet fuel prices have surged by 82% since the onset of the Iran war, complicating financial recovery for airlines like Spirit. Carriers struggle to raise ticket prices sufficiently to cover fuel costs without deterring demand, while Europe faces an imminent fuel shortage that could lead to flight cancellations.
Read at 24/7 Wall St.
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