Financially weak airlines at risk from rising fuel prices

Energy crisis 'first bump in the road' for aviation since Covid

Financially weak airlines, particularly those that avoided hedging on fuel costs and focus on leisure travel, are more exposed to financial distress amid persistently high fuel costs, according to consultancy Alton Aviation.John Mowry, managing director of Alton Aviation, said the energy crisis is the "first bump in the road" for aviation since the pandemic.

Jet fuel prices more than doubled after the Iran war started, leading to massive flight cuts and driving Lufthansa CityLine and Spirit Airlines out of business.

Jet fuel typically accounts for 30% of an airline's total expenses.

Before the conflict, the consultancy predicted 5-7% air traffic growth globally for this year, but now a readjustment is needed depending on how long the conflict persists.