AAPA warns soaring jet fuel prices could make air travel less affordable
KUALA LUMPUR: Air travel in Asia Pacific could become less affordable as airlines face pressure to raise fares and cut capacity to cope with soaring jet fuel prices, according to the Association of Asia Pacific Airlines (AAPA).
The Association of Asia Pacific Airlines (AAPA) has warned that soaring jet fuel prices could make air travel less affordable in the region. AAPA Director General Wong Hong stated that airlines may need to raise fares and reduce capacity to cope with the rising costs of jet fuel. He noted that continued increases in airfares could eventually discourage passengers from traveling, as there is a limit to how much they are willing to pay.
While passenger traffic showed signs of weakness in the first half of the year, it returned to a marginal positive growth in September. However, the overall performance for the year remains weak, making it difficult to predict passenger demand over the next three to six months if jet fuel prices remain high. Airlines are unable to control jet fuel prices and have limited options to manage their costs, Wong emphasized.
He urged governments and aviation authorities to monitor the financial health of airlines and consider measures to help them manage the cost pressures. The challenges facing airlines have been compounded by supply chain problems in the aircraft industry, with some AAPA member airline chief executives reporting aircraft deliveries taking as long as six years.
This delays fleet renewal and expansion plans for airlines. Additionally, airlines face difficulties in meeting their sustainability commitments due to the high cost and limited availability of sustainable aviation fuel (SAF), which remains about three to four times more expensive than conventional jet fuel.
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