Airlines face new challenge with fuel prices on upswing

Just as airlines start to emerge from their biggest slump on record, the industry is facing a new headache: a rapid rise in fuel prices.

Escalating fuel costs will create a dilemma for carriers who unwound hedges that proved costly when demand suddenly disappeared when the coronavirus hit last year, said John Grant, senior analyst at OAG, which tracks aviation trends.

“It’s more than a concern,” given that the fuel bill is the one of airlines’ biggest and most unpredictable costs, he said in a webinar.