What Happened
High Fuel Costs And Delivery Delays Threaten Margins
The Association of Asia Pacific Airlines (AAPA) has warned that the pressures on Asia-Pacific airlines, including high jet fuel prices and multi-year aircraft delivery delays, are not normal and not sustainable. According to AAPA director general Wong Hong, fuel now accounts for roughly 33% of airline operating costs, with jet fuel crack spreads at multi-year highs. The situation is further complicated by softening passenger yields and delivery delays of up to six years, which may force airlines to weigh capacity adjustments and pricing strategies. This was reported by Aviation Business News.