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Why fuel price drops won't mean cheaper airfares
Key takeaways
- Experts aren't expecting airfares to drop at the same rate as the price of jet fuel.
- Airlines raised prices for flights in response to higher fuel costs, but experts say there will be a lag before airfares come back down if demand does not ease.
- Probably not any time soon, says Justin Brownjohn, the senior manager at the Royal Melbourne Institute of Technology's Aviation Academy.
Why this matters: an international story with cross-border implications worth tracking.
Experts aren't expecting airfares to drop at the same rate as the price of jet fuel. (Reuters: Tim Wimborne)
Link copied Share Share article. The global jet fuel price has dropped after the US and Iran signed a preliminary ceasefire deal, which has many hoping that airfares will drop too.
Airlines raised prices for flights in response to higher fuel costs, but experts say there will be a lag before airfares come back down if demand does not ease.
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