The big news coming out of this year’s International Air Transport Association Annual General Meeting is that airlines are feeling the pain from skyrocketing fuel prices and soon consumers will too.
Over the past year, the price of Brent crude oil has shot up nearly 57% to more than $75 a barrel. And things are only expected to get worse for airlines.
IATA’s latest projections show that the price of jet fuel is going to reach as high as $84 a barrel.
With fuel representing roughly 25% of an airline’s overall operating expenses, expect the airlines to pass on the cost to consumers.
According to Reuters, American Airlines CEO Doug Parker, once again, cautioned the crowd at IATA’s yearly get together of industry leaders, that ticket prices will go up as airlines reduce the number of seats available for sale to save on fuel costs…
