Top News

Airline tickets could get even more expensive, aviation officials warn Vibesbullet

#Airline #tickets #expensive #aviation #officials #warn

click to watch the full video

Airline tickets could become more expensive, due to the lack of refining capacity and the financial situation of airlines, said William Walsh, chief executive of the International Air Transport Association (IATA).

Declining refining capacity during the pandemic and rising jet fuel prices caused by increased fuel demand are “worrying” for the airline industry, Walsh told CNBC’s Hadley Gamble on Wednesday.

U.S. refining capacity has fallen 5.4% in 2022 since peaking in 2019, the lowest in eight years. The decline came as a result of refinery closures and conversions to produce more renewable fuels.

Walsh added that if consumers pay higher ticket prices, airlines don’t necessarily make a profit.

“And given the financial situation of many airlines… It’s not that the airlines are making money, [they] only pass on a cost that they themselves cannot absorb and cannot avoid,” he said.

IATA: Airlines can't do much about high fuel prices

Russia–Ukraine War

But another factor could contribute to even higher ticket prices – Russia’s announcement of a military mobilization, said Qatar Airways CEO Akbar Al Baker.

Russian President Vladimir Putin announced a partial military mobilization in Russia on Wednesday, putting the country’s people and economy on a war footing as Moscow’s invasion of Ukraine continues.

Al Baker told CNBC that China’s Covid policies are the “smallest of [his] worries” and that the biggest concern for the airlines is the escalation of the Russian-Ukrainian war.

“For me, the biggest worry is the spread of the conflict, which [will then] fuel inflation, putting more pressure on the supply chain,” he added. “The net result will be fewer passengers on my plane.

Qatar Airways CEO: Aviation's biggest challenge is political upheaval

“It also worries me… [instability] the price of oil, which I do not want to pass on to passengers, which would then discourage them from travelling. »

Oil prices jumped more than 2% after Putin’s announcement, on fears of an escalation of war in Ukraine and tight oil and gas supplies.

Nevertheless, Al Baker maintained that Qatar will continue to fly to Russia as long as it is safely operational.

“We will continue to fly to Russia, we will continue to serve the people… We are not a political institution. We are an industry serving ordinary people.”

Hopes for affordable sustainable fuel

Al Baker called for more investment in alternative fuels and said Qatar Airlines is “ready to invest in sustainable aviation fuel” provided it is “reasonably priced”.

“I have no problem [paying] a little more, but they cannot pay four or five times the price of normal fluorinated gas. Fluorinated gases, also known as fluorinated gases, are artificial gases used in various industrial uses.

Why the United States lacks pilots

“If we’re pushed to do it, you as a passenger are going to pay for it,” he said.

Walsh echoed his hopes to see more investment in sustainable aviation fuel production rather than traditional refineries, citing environmental concerns.

Last year, IATA set a goal for the global airline industry to achieve net zero carbon emissions by 2050.

“Sustainable aviation fuels represent the best option the industry has to reach our goal of net zero by 2050.”

Not all news on the site expresses the point of view of the site, but we transmit this news automatically and translate it through programmatic technology on the site and not from a human editor. ,

Source link

Related Articles

Leave a Reply

Your email address will not be published.

Back to top button
%d bloggers like this:

Adblock Detected

Please disable your ads blocker to continue browser