Flight Prices Are Up, Fuel Is Low. Is Euro Summer on Ice?
Flight bookings from the US to Europe were down 11.2% year-on-year as of late March, according to Cirium, amid rising airfares due to low jet fuel supplies. United Airlines CEO Scott Kirby predicted flight prices could rise by 15% to 20% in the coming months.
The ongoing disruption to the Strait of Hormuz is fueling an aviation crisis, with low jet fuel supplies driving costs upward and resulting in high airfares, reduced airline capacity, and flight cancellations. Flight bookings from the US to Europe were down 11.2% year-on-year as of late March. United Airlines CEO Scott Kirby predicted flight prices could rise by 15% to 20% in the coming months. Luxury brands are feeling the heat as spending from American and Chinese tourists is down. However, Asian airlines are reporting strong demand on their European routes this summer. Despite rising prices, luxury is better suited to weather the impact as higher-income consumers have more flexibility.
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