Rising Jet Fuel Costs Threaten Long-Term High Airfares

Soaring jet fuel costs and thin hedging cover mean high airfares could become permanent.

High airfares risk becoming permanent as carriers across the Asia-Pacific region battle surging jet fuel expenses and thinning hedging cover. Wong Hong, head of the Association of Asia Pacific Airlines, warned that mounting operating costs will likely keep ticket prices elevated. Fuel currently accounts for approximately 33% of total carrier expenses.

• The warningWong Hong stated that carriers have thinner hedging cover to protect against volatile market swings.