Another airline takes measures to cope with fuel costs.
The US-based American Airlines announced that it is temporarily suspending some of its routes this summer, as high jet fuel costs continue to weigh on air transport expenses.
The war in Iran and the closure of the Strait of Hormuz have sent fuel costs soaring, affecting international aviation.
In a statement, American Airlines said it had adjusted service for "selected routes" in August and September, and that travelers affected by the changes would be compensated with alternative arrangements or refunds. The Texas-based carrier cited increased fuel costs and said these changes were in line with broader industry trends.
American also stated that it is not permanently reducing any of its routes and that it is proud to "offer an industry-leading network with more flights than any other US airline."
Summer and fuel costs
As fuel costs have risen sharply and airlines cut routes, options for travelers are dwindling. Tickets are fewer and more expensive, impacting their budgets.
Airlines around the world have canceled many flights or similarly reduced schedules in the coming months. They have also attributed the increase in fees and reduction of other perks to fuel costs as they try to save money.
Almost +50%
Jet fuel costs account for about 30% of airlines' total expenses. And they have skyrocketed during the war. A barrel cost an average of nearly $142 last week, according to the International Air Transport Association. That is lower than April's peak, but still much higher (almost 50%) than the $99-per-barrel price for jet fuel before the US and Israel started the war with attacks on Iran in late February.
Most traffic through the Strait of Hormuz, a key waterway for global oil flow, has remained essentially stalled for the past three months. Prices have fallen somewhat recently as markets hope for a possible reopening of the passage. However, the US and Iran have still not reached an agreement. And the longer the traffic remains stalled, the worse the energy crisis could become.
Consumers are not only feeling the pinch in air travel. Gasoline, food, and other everyday essentials are also being hit by these supply crises.
