{
  "id": 3467457,
  "title": "Fuel cools, but India flights may stay costly",
  "url": "https://urgent.news/2026/08/26/fuel-cools-but-india-flights-may-stay-costly",
  "topic": "business",
  "section": "Business",
  "published": "2026-08-26T08:33:38.000Z",
  "source": {
    "name": "The Economic Times",
    "slug": "the-economic-times",
    "url": "https://economictimes.indiatimes.com/industry/transportation/airlines-/-aviation/indias-flights-may-stay-expensive-even-as-fuel-gets-cheaper-sp/articleshow/133534953.cms"
  },
  "original_language": "en",
  "account": "India and the Asia-Pacific region may see soaring airfares even as jet fuel prices start to ease, according to a report by S&P Global Ratings. The agency attributes this to strong passenger demand, which has given airlines leeway to maintain high ticket prices. Passenger yields in the region grew around 10-15% year-on-year through June 2026, with only a 1-2% year-on-year drop in demand in May and June.\n\nThe increase in fares, however, hasn't led to a significant drop in demand, as airlines have reduced capacity during the period, keeping load factors stable. This trend followed a sharp rise in jet fuel prices, which surpassed USD 240 a barrel by the end of March 2026 due to supply disruptions caused by the Middle East conflict. Even though fuel costs have since dropped, S&P expects geopolitical uncertainty to keep them high throughout the year.\n\nS&P predicts that airline margins will improve notably from the fourth quarter as seasonal demand picks up. It forecasts Brent crude prices to fall to USD 80 a barrel in 2027, down from around USD 110 a barrel in 2026. Low-cost airlines, which spend nearly 40% on fuel compared to about 33% for full-service carriers, may be more vulnerable to high fuel expenses. Despite the near-term setbacks, S&P anticipates passenger demand across the Asia-Pacific region to stay resilient, driven by rising middle classes and economic growth in China and India.",
  "summary": null,
  "key_points": [
    "India and Asia-Pacific may see higher airfares despite easing jet fuel prices",
    "Passenger yields grew 10-15% year-on-year in June 2026, demand dropped 1-2%",
    "S&P predicts airline margins to improve in Q4 as demand picks up"
  ],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}