United Airlines says that the war between the United States and Iran has cost the airline an additional $6 billion in jet fuel payments this year. The skyrocketing price of jet fuel is not only a pain for the airline industry, but it has also become a headache for passengers, as airlines increase fares and cut down on flight capacity to make up for the increased expense. The United States and Israel attacked Iran on February 28th, and in retaliation, Iran promptly shut down virtually all traffic through the critical oil chokepoint of the Strait of Hormuz. The move completely paralyzed the global energy trade and created a massive jet fuel shortage. Last month, the global airline industry’s trade organization, International Air Transport Association (IATA), said that it expects airline profits to be slashed in half this year because of the shortage. The head of the International Energy Agency called it “the largest energy crisis we have ever faced” back in April, and the jet fuel shortage and accompanying price hikes were also noted as the final drop that pushed the bankrupt Spirit Airlines over the edge, causing it to cease all operations earlier this year. The director of IATA said last month that he expects more airlines to follow Spirit’s fate, or get acquired by larger competitors due to the rising fuel costs.
United Said Iran War Cost It $6 Billion In Fuel, Passengers Can Expect Reduced Flights
Fuel cost United 84% more than normal in the past three months as the war raged on.
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