Airlines cut flights over fuel

Airlines are cutting flights and raising fares as jet fuel prices jump, with Cathay Pacific the latest carrier to trim its schedule. (cnbc.com) Cathay said on April 11 that it will cancel a small share of passenger flights from mid-May through June 30, with cuts centered on regional routes and some services to Australia, South Asia and South Africa. The airline said the move followed a surge in fuel costs tied to conflict in the Middle East. (cnbc.com) Air New Zealand said on April 7 that it had made more schedule changes for May and June, affecting about 4 percent of flights and 1 percent of passengers. The carrier also said jet fuel prices were more than double normal levels and that it had raised some fares. (airnewzealandnewsroom.com) Earlier, Air New Zealand said a first round of consolidations between March 16 and May 3 covered 5 percent of its domestic and international schedule and affected just under 44,000 passengers out of 1.9 million. It said those flights were mainly in lower-demand or off-peak periods. (airnewzealandnewsroom.com) In Australia, Qantas-owned Jetstar said on March 24 that it was reducing flights between Australia and New Zealand from May because of higher jet fuel costs. Jetstar said 12 percent of some Auckland-Sydney and Auckland-Brisbane services would be affected, along with some domestic New Zealand flights. (abc.net.au) Qantas itself moved first on prices, saying on March 10 that it would raise international fares that week as fuel costs surged. Reuters reported the increases would vary by route, while Bloomberg reported they were typically about 5 percent. (money.usnews.com) (bloomberg.com) In the United States, United Airlines said on March 20 that it would cancel about 5 percent of its planned flights in the short term. Chief Executive Scott Kirby said the airline was preparing for oil to reach as high as $175 a barrel and stay above $100 through the end of 2027. (finance.yahoo.com) (marketscreener.com) The pressure is unusually sharp because fuel is one of an airline’s biggest costs, often as much as a quarter of operating expenses. Reuters reported jet fuel had risen from about $85 to $90 a barrel to roughly $150 to $200 a barrel in recent weeks. (marketscreener.com) Airlines are also burning more fuel on some routes because airspace closures and conflict zones have forced detours. CNBC reported carriers had already started lifting fares in March, and some warned they could make further network changes if fuel stayed elevated. (cnbc.com) (airnewzealandnewsroom.com) Airport operators are warning the squeeze could spread beyond ticket prices and trimmed schedules. Reuters reported on April 10 that Europe’s airport industry group said the continent could face a broader jet fuel shortage within three weeks without action to secure supply before the summer peak. (msn.com) For travelers, the immediate pattern is already visible in airline filings and statements: fewer flights on weaker routes, higher fares on stronger ones, and more schedule changes for May and June if fuel does not ease. (cnbc.com) (airnewzealandnewsroom.com) (finance.yahoo.com)