How the Iran war is hurting travelers, airline industry
Key takeaways
- Europeans may have to reconsider their summer travel plans, as a jet fuel shortage triggered by the blockade of the Strait of Hormuz could lead airlines to set higher ticket prices.
- The reason: Both Iran and the US have at different points blocked the Strait of Hormuz, a key waterway for a fifth of the world's oil and gas tankers.
- "If fuel prices, which represent 25% to 50% of an airline's total operating expenses, remain high and airlines have not hedged, they could go bankrupt," she said.
Why this matters: an international story with cross-border implications worth tracking.
Europeans may have to reconsider their summer travel plans, as a jet fuel shortage triggered by the blockade of the Strait of Hormuz could lead airlines to set higher ticket prices.
https://p.dw.com/p/5D5PSWhile some analysts fear smaller airlines may go bankrupt, others say a shortage in jet fuel hasn't yet set in Image: Nicolas Economou/Nur Photo/picture alliance Advertisement Jet fuel prices have more than doubled since the US and Israel first attacked Iran in February. The reason: Both Iran and the US have at different points blocked the Strait of Hormuz, a key waterway for a fifth of the world's oil and gas tankers.
Marina Efthymiou, an aviation management professor at Dublin City University, told DW that jet fuel prices in Europe rose from about €68.27 ($80) per barrel in February to €153.84 ($180) at the end of April, according to the International Air Transport Association.