Executives at major global airlines warned that the industry faces a prolonged period of financial strain, as persistently high jet fuel prices driven by the war in the Middle East raise operating costs and could push up ticket prices. They described rising fuel costs as a new reality and noted that fuel hedging contracts, which have cushioned price swings, are nearing expiration, which could squeeze profit margins in coming years. Airlines are watching whether inflation and a possible economic slowdown weaken travel demand, and are tightening cost controls, reassessing fleet and expansion plans, and investing in efficiency and technologies including artificial intelligence. The sector is still recovering from the COVID-19 pandemic.
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Original headline: Middle East war adds to pressures on global airlines
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