High fuel costs to trigger airline failures and consolidation, industry chief says
IATA Director General Willie Walsh warns that rising jet fuel costs, exacerbated by the conflict in the Middle East, will likely lead to more airline bankruptcies and industry consolidation. Airlines are expected to cut unprofitable routes and maintain high ticket prices to protect their margins.
Why it matters
The instability in the aviation sector threatens global travel affordability and could lead to reduced connectivity for consumers.
Airlines are also expected to protect margins by cutting unprofitable routes, while fares, which have surged since the outbreak of the Iran war, are unlikely to come down soon, Walsh said.
The report relies on industry expert commentary and provides a balanced view of economic pressures on the airline sector.
Get smarter about the news
Sign up free for a feed built around what you actually care about, Dive Deeper research on any story, and the full text of every article.
Create free accountAlready have an account? Sign in