BUSINESS NEWS
The price of jet fuel in Europe has doubled in the past year
Airfares tipped to rise as costs and demand surge
Prices forecast to jump as stronger dollar hikes cost of jet fuel. Ian Taylor reports
Rising costs and strong demand appear set to push up airfares, with fares in the US rising at a record rate. But fierce competition, led by Ryanair, could squeeze airline margins in Europe outside of peak summer. Fares in the US rose 19% month
on month in April, the largest increase the US consumer price index has recorded since it launched in 1963. US carriers are operating at 93% of
48 26 MAY 2022
2019 capacity and have found no difficulty passing on price increases up to now. American Airlines chief executive Robert Isom said last month: “Demand is as strong as we’ve ever seen it.” The value of air bookings through
US agents has also soared despite a drop-off in sales last month due to the Easter holiday. The US Airlines Reporting
Corporation, which acts like Iata’s
travelweekly.co.uk
BSP in settling sales through agents and travel management companies, reported the value of air bookings hit a seven-year high of $7.7 billion in April. The average domestic return fare of $585 was 45% up year on year despite a 1% fall in bookings month on month and a 10% fall in passenger numbers. The price of jet fuel fell almost
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