Higher oil prices to raise ticket fares but will not stall airlines’ recovery, Iata says – The National

Higher oil prices to raise ticket fares but will not stall airlines’ recovery, Iata says – The National

Rising oil prices will add pressure on airlines' costs, forcing them to pass on some of that burden to passengers by raising air fares, but will not stall the recovery of carriers, according to the head of the International Air Transport Association.

Global airlines, already battered over the past 20 months by the Covid-19 pandemic that has hit their revenue, are facing stronger oil prices of about $80 per barrel and increasing fees from air navigation service providers (ANSPs) seeking to recoup their own losses, Willie Walsh, the director general of Iata, said in an online media briefing on Wednesday.

"The issue that will impact fares in the short to medium-term will be the high price of oil, that continues to remain stubbornly high ... and increased charges by ANSPs and airports," Mr Walsh said. The industry has no choice but to reflect this into ticket prices."