The global aviation industry is facing a significant increase in costs: the sharp rise in fuel prices is already forcing airlines to rethink their rates and reduce the number of flights. Experts estimate that ticket prices may rise by about 20%, writes TSN.
Not long ago, airlines were anticipating record profits in 2026, but the rapid rise in aviation fuel prices has put these forecasts at risk. As a result, companies are forced to change routes, optimize schedules, and introduce additional fuel surcharges.
Airlines such as United Airlines, Air New Zealand, and SAS have already reported reductions in flights and price increases. Other companies have also begun adjusting their rates to compensate for rising costs.
Experts note that the industry finds itself in a difficult situation: on one hand, prices need to be raised due to expensive fuel, while on the other, there is a risk of decreased demand. Passengers are already feeling pressure from the overall increase in prices, including fuel costs, and may begin to forgo trips.
After the pandemic, demand for flights remained high, and limited supply allowed prices to be maintained. However, the current crisis may change this dynamic: to preserve profitability, airlines may further reduce the number of flights.
Low-cost carriers are considered particularly vulnerable, as their customers are the most sensitive to price increases. Analysts do not rule out that some passengers may switch to alternative modes of transport—trains or buses.
Additional complications arise from supply issues with new aircraft and technical difficulties that hinder fleet renewal and reduce fuel costs.
According to experts, the current situation will exacerbate the divide between strong and weak market players: large airlines with stable finances will be able to weather the crisis more easily, while less stable carriers will face serious pressure.
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