New York: Due to the increase in crude oil prices at the global level,airlines have also raised their fares, resulting in a noticeable decreasein passenger traffic.
According to details, in recent days, there was a significant increase inthe sale of tickets by American airlines in response to the decrease in oilprices. However, in the past few weeks, with the rise in oil prices, therehas been a 20% decrease in ticket sales in the last three months.
In this situation, Australian company Qantas has stated that it canincrease ticket prices in response to the reaction to the rising fuelprices. Speaking to the Financial Times, the national carrier of Finland,Finnair, and Barclays Bank officials expressed the expectation that similarprinciples will be applied to other international companies.
This step has been taken after the price of oil reached its highest levelof $95 per barrel following the record of $135 per barrel for jet fuel onSeptember 15, according to IATA when the price of one barrel of oil reached$94 per barrel. According to analysts, this is a monthly increase of 9% butstill, on an annual basis, oil prices are nearly 2.5% lower.
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European airlines have benefited greatly from their global rivals becausethey had taken protective measures against the sharp rise in fuel prices.
These airlines have minimized losses by renegotiating previous purchasecontracts. In contrast, American airlines are in a difficult situation asthey usually do not hedge. These concerns have led to a significantincrease in airline stocks in recent weeks due to the relevance of theincrease in crude oil prices.
