Airline tickets could become even more expensive, aviation execs warn

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Air tickets may become more expensive — thanks to the lack of refining capacity and the financial state of airlines, said William Walsh, the director-general of the International Air Transport Association (IATA).

The decline in refining capacity during the pandemic, and higher jet fuel prices caused by the increase in demand for fuel are “of concern” to the airline industry, Walsh told CNBC’s Hadley Gamble on Wednesday.

U.S. refining capacity dropped by 5.4% in 2022 since it peaked in 2019 — the lowest in eight years. The dip came in the wake of refinery closures and conversions to produce more renewable fuels.

Walsh added that while consumers are paying higher ticket prices, airlines are not necessarily making a profit.

“And given the financial state of many airlines … It’s not that airlines are making money, [they] are just passing on a cost that they can’t absorb themselves, and that they can’t avoid,” he said.

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Source: https://www.cnbc.com/2022/09/22/airline-tickets-could-become-even-more-expensive-aviation-execs-warn.html