Oil prices have skyrocketed as economies recover from the covid-19 pandemic and also because of the Ukraine War crisis.
Willie Walsh, the director of the International Air Transport Association -IATA has revealed that the cost of fuelling aircraft will be divvied up to the airline customers. This is coming as the cost of fuel is on the rise. The main airlines in the country have been warning their respective customers since March of the increased flight delays and cancellations in the days ahead. The warnings were because of the scarcity of Jet fuel/aviation fuel the airline companies have been experiencing.
Earlier in May, commercial flight operators had threatened to strike to protest the increase in the price of JetA1 -aviation fuel. This action was later suspended. But the air industry leaders have warned that flights will now get more expensive across the globe. Mr. Walsh, the International Air Transport Association boss explained:
“Flying will get costlier for customers, without a doubt. The exorbitant price of oil will reflect in the increased ticket prices.”
Oil prices had been increasing as demands for the commodity since the covid-19 restrictions lifted have picked up.
The fallout from the Russian-Ukraine war is also a contributing factor to the hike in fuel prices. This is partly because the U.S announced a complete ban on oil imports from Russia. The U.K has also promised to phase out Russian supplies by the end of 2022. European Union leaders have also announced plans to block most Russian oil imports by the end of the year.
What all this simply means is that the demand for oil from the producers has multiplied and it has led to increased prices for the commodity.