Airlines around the world are raising ticket prices due to rising fuel costs

The aviation industry has been hit by a crisis due to the war in Iran, which has caused fuel prices to double and forced airlines to cut back on flights. 

According to a March 30 report by Reuters, airfares could rise by 20% to cover costs. Companies such as United Airlines, Air New Zealand, and SAS have already announced route adjustments and the introduction of additional fuel surcharges, jeopardizing the industry’s previously projected record profit of $41 billion.

Experts are calling the current situation a perfect storm, as high costs are forcing price hikes at a time when consumers are already feeling financial pressure. Low-cost carriers are at the greatest risk, as their customers may switch from planes to trains or buses due to their sensitivity to travel costs. Upgrading the fleet to more fuel-efficient aircraft models is currently hampered by supply chain shortages and issues with next-generation engines. Analysts predict that the crisis will widen the gap between financially stable companies and weaker market players, who may not be able to withstand the pressure.

In India, fertilizer plants are shutting down due to fuel shortages, threatening harvests in a country that is one of Asia’s largest food producers and the world’s second-largest producer of sugar and rice.

Additionally, oil prices could reach a record $200 per barrel due to the escalation of the conflict in the Middle East.