Jet Fuel Prices Surge 120% as Airlines Cut Flights and Hike Fares

AI Summary

Air India and Air New Zealand are cutting flights and increasing fares due to a surge in jet fuel prices, which reached a record $1,838 per tonne, up from $831 prior to the conflict. Jet fuel costs compose 20-40% of airlines' operating expenses, compelling many to take emergency measures. The disruption in fuel supply, largely from the Middle East, is impacting major economies like Japan and South Korea. Analysts warn of continued ticket price increases and additional flight cancellations as the situation persists, affecting travel demand significantly.