NEW DELHI : The surge in crude oil prices, after a US air strike killed a top Iranian general, may push airlines operating in India deeper into losses, and threaten the survival of one or two carriers, two airline officials said.
If the conflict between the US and Iran worsens, and crude prices goes above $70-72 a barrel, “there’s a high chance that an Indian airline could go bust,” said one of the two executives, requesting anonymity. “A spike in oil prices as a result of the US attack is a major concern, while threat of a war reduces travel demand,” he added.
Following the US air strike, oil prices surged 4% to around $70 a barrel in ICE Futures Europe.
