Jet Fuel Surpasses $190, Threatening to Raise Ticket Prices
The global average price of jet fuel reached $190.18 per barrel in the week ending October 9, up 111.2% year-on-year, threatening an increase in ticket prices.
Monitoring by the International Air Transport Association (IATA) showed that the global average jet fuel price reached $190.18 per barrel in the week ending October 9, an increase of 111.2% from last year and 1.5% from the previous week, according to Gulf News.
The Europe and CIS region led with an average of $202.61 per barrel, the highest among all regions, while the Middle East region averaged $165.01 per barrel.
Ali Alnaqbi, Chairman of Middle East Business Aviation, said that airlines might reconsider their route networks or pass the cost increase on to passengers by raising ticket prices, according to the newspaper.
Jet fuel is one of the largest operating cost items for airlines, and its rise impacts ticket pricing and route operation decisions, particularly on long-haul routes.
What Do These Terms Mean?
Jet Fuel: A refined fuel type specified for jet engines, typically priced per barrel via a global price index.
Barrel: A standard unit of measurement for oil and its derivatives equivalent to about 159 liters, with its price used as a benchmark for fuel pricing.
Operating Cost: The total expenses incurred by an airline to operate its flights, most notably fuel, aircraft, and crews.
Weekly Newsletter
Read between the lines before everyone else. Decode the most important economic, tech, and decision-maker movements in the region.. in 5 minutes every Saturday.
