Airlines are feeling the strain of swelling oil prices resulting from the Iran war and closure of the Strait of Hormuz. To deal with higher operating costs, many companies are making changes that shift the burden to consumers, including higher baggage fees, more fuel surcharges and canceled routes.
How are higher gas costs affecting airlines? Airlines and their customers across the U.S. are impacted but especially those based in four major hubs: Chicago, Houston, Los Angeles and New York City. In these locations, the average price for a gallon of jet fuel is currently $4.81, according to the aviation trade association Airlines for America. Airlines are also “facing an increase in the amount of fuel their aircraft use because of extra miles required to avoid flying over the conflict zone,” said The Guardian.
How are airlines adapting? Many are adding “extra fees and surcharges onto already rising ticket prices,” said The New York Times. Delta and Southwest announced they would “start charging $10 more to check a bag on U.S. domestic flights,” days after United and JetBlue said the same. Some airlines are also including pricing for the fuel itself. Canada’s second-largest airline, WestJet, announced it would “add fuel surcharges of up to 60 Canadian dollars, or about $43, to some flights.”
Airlines are also cutting the number of places they go. Several Asian airlines have stated they would “cut flights to mitigate fuel shortages and mounting costs,” said Business Insider. Ryanair, Europe’s largest carrier, is also “considering reducing routes,” while Lufthansa could ground up to 40 planes. Air New Zealand will “cut about 5% of its flights, or about 1,100, at the start of May,” and in the U.S., United and Delta are both cutting routes. ACI Europe, an association representing airports in the European Union, notes the fuel shortages could “hit within three weeks, disrupting summer travel and ‘significantly’ harming the European economy,” said CNBC. For people who still want to fly, experts say “flexibility and careful planning can help offset these costs,” said The Associated Press, and “fare-tracking sites can alert travelers to price changes.”
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