Summer fares spike

Airlines are warning that summer tickets are getting more expensive fast, with Europe and Asia routes facing the earliest pressure as jet-fuel supplies tighten. (washingtonpost.com) The Washington Post reported on April 22 that travelers should book “as soon as possible” for the first half of peak season and expect higher prices on trips to Europe and Asia. The paper said some carriers are also weighing schedule cuts if fuel shortages deepen. (washingtonpost.com) United Airlines Chief Executive Scott Kirby said on April 22 that fares may need to rise by 15% to 20% to offset the jump in jet-fuel costs. Reuters reported that warning as airlines tested how much higher prices travelers will absorb this summer. (reuters.com) Lufthansa said this week it will cut 20,000 short-haul flights through October, and The Associated Press reported the move was tied to soaring fuel costs and worries that some countries could run low on jet fuel. The Independent separately reported that easyJet, KLM and other carriers are also adjusting fares or trimming flying. (apnews.com, independent.co.uk) Jet fuel is refined from crude oil, and airlines burn it in large volumes on long-haul flights, so a supply squeeze hits international routes first. The Independent reported that Europe relies on the Middle East for about 75% of its jet-fuel imports, leaving European hubs exposed when Gulf shipments are disrupted. (independent.co.uk) The supply shock has been linked to the war involving Iran and the disruption around the Strait of Hormuz, a shipping lane used for a large share of global oil flows. Reuters reported on April 17 that the European Union was prepared to coordinate a release of jet-fuel stocks if the disruption persisted. (reuters.com) Fuel costs were already climbing before the latest airline warnings. Airlines for America said the Argus U.S. jet-fuel index was $4.23 a gallon on April 22, up from $4.08 on April 10. (airlines.org) That cost surge is now feeding straight into summer booking advice. The Washington Post said travelers heading overseas may want to buy earlier than usual, while The Independent reported that carriers are considering surcharges and cancellations if the squeeze on supply does not ease. (washingtonpost.com, independent.co.uk)