Aviation regulators warn airfares could become more expensive

The 'political will' needed to help aviation reach true net zero by 2050: IATA

William Walsh, director general of the International Air Transport Association (IATA), said airfares could become more expensive – due to the lack of screening capacity and the financial condition of airlines.

Walsh told CNBC’s Hadley Gamble on Wednesday that a decline in refining capacity during the pandemic and higher jet fuel prices due to increased fuel demand are “concerns” for the airline industry. .

US refining capacity is down 5.4% in 2022 since peaking in 2019 – an eight-year low. The immersion takes place after refinery closure and conversion to produce more renewable fuels.

Walsh added that while consumers are paying higher fares, airlines aren’t necessarily making a profit.

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

IATA: Not much airlines can do about high fuel prices

Russo-Ukrainian War

But another factor that could contribute to higher fares is Russia’s announcement of a military deployment, said Akbar Al Baker, CEO of Qatar Airways.

Russian President Vladimir Putin on Wednesday announced a partial military deployment in Russia, putting the country’s people and economy in a wartime position as Moscow’s invasion of Ukraine continues.

Al Baker tells CNBC that China’s Covid policies are “smallest of the bunch.” [his] “And the biggest concern of the airlines is the escalation of the Russian-Ukrainian war.

“For me, the biggest worry is the spreading conflict, [will then] fuel inflation, putting more pressure on the supply chain,” he added. The net result is that there will be fewer passengers on my plane. “

Qatar Airways CEO: The biggest challenge facing the airline industry is political upheaval

“It also worries me… [instability] the price of oil that I don’t want to pass on to the passengers, which would keep them from traveling. “

Oil prices jumped more than 2% following Putin’s announcement, following concerns about an escalation of the war in Ukraine and reduced oil and gas supplies.

However, Al Baker still insists that Qatar will continue to fly to Russia as long as the country is safe to operate.

“We will continue to fly to Russia, we will continue to serve the people … We are not a political institution. We are an industry that serves the people.”

Hope for affordable sustainable fuel

Al Baker called for more investment in alternative fuels, and Qatar Airways “is willing to invest in sustainable aviation fuel” provided it is “reasonably priced”.

“I have no problem [paying] a little more, but they can’t afford four or five times the price of regular F-gas. “F-gas, also known as fluorinated gas, is a man-made gas that is used for various industrial purposes.

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