What Happened
Global Carriers Cut Capacity And Raise Fares As Fuel Prices Soar
The global airline industry is facing a severe jet fuel price crisis, with prices surging to $150-$200 per barrel due to the disruption in the Strait of Hormuz. Airlines such as Delta, Air New Zealand, and Cathay Pacific are reacting by cutting capacity, raising fares, and suspending earnings forecasts. The crisis may spiral into a full-blown supply emergency if the disruption continues, with the US President urging countries to secure their own oil. According to AeroTime, the situation is becoming increasingly dire, with airlines taking emergency measures to conserve fuel and the first signs of a physical supply squeeze appearing in Asia.