Jet-fuel expenses have surged by tens of billions of dollars, but carriers say households are absorbing the increase in fares.
Airlines are facing their most expensive holiday travel season in years as jet-fuel costs climb sharply. Despite the rising expenses, carriers report that passengers are continuing to book flights and accepting higher ticket prices.
The surge in jet-fuel costs is attributed to global supply disruptions and increased demand as travel rebounds post-pandemic. Airlines have passed much of the cost increase onto consumers through elevated fares.
Industry analysts note that while households are currently absorbing the fare hikes, sustained high fuel prices could further strain consumer budgets. Carriers are also contending with staffing shortages and airport congestion that add to operational costs.
Source: Wall Street Journal US Business · Summarized by HeadlinesBriefing