Aviation industry faces fuel crisis and strategic shifts

The aviation industry is facing significant shifts due to rising fuel costs and evolving travel benefits. Experts warn that the kerosene crisis may worsen, potentially threatening the survival of some low-cost carriers and forcing airlines to restructure their business plans and fuel procurement strategies.

AirBaltic, the Latvian carrier, is already adjusting its strategy in response to these economic pressures. The airline has announced intentions to reduce its Airbus A220-300 fleet by one-third by the end of 2026. Additionally, the company has requested €225 million in interim financing and plans to pivot its focus toward its Riga hub, scaling back operations in Tallinn, Vilnius, and Tampere.

Separately, an analysis highlights the existence of the ‘non-rev’ (non-revenue) system, which allows approximately 8 million aviation employees and their families to travel at significantly reduced rates. Under this system, standby tickets can allow passengers to fly Business Class for a fraction of the commercial cost—for example, a Milano-New York flight costing roughly €286 compared to a standard fare of €3,590. However, these travelers are not guaranteed seats and can only board if space remains after commercial passengers are accommodated.