""If fuel prices, which represent 25% to 50% of an airline's total operating expenses, remain high and airlines have not hedged, they could go bankrupt.""
""We are obliged to do so, because otherwise we just are bankrupt in a few months," Sebastien Justum, Air France-KLM's senior vice president, said at a recent event in the European Parliament."
""Europe consumes about 1.6 million barrels of jet fuel daily on average, and procures 1.1 million barrels from domestic sources.""
""Airfare has increased by 24% over the year, according to a recent report by Teneo, an advisory firm.""
Jet fuel prices have more than doubled since February due to blockades in the Strait of Hormuz. Prices rose from approximately $80 to $180 per barrel. High fuel costs, which account for a significant portion of airline expenses, could lead to bankruptcies if they persist. A shortage of jet fuel is anticipated in Europe, which relies heavily on imports from the Middle East. Airlines are responding by increasing fares and cutting flights to manage costs, with Air France-KLM imposing surcharges and Lufthansa reducing short-distance flights.
Read at www.dw.com
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