Airfares could rise up to 15% due to rising fuel costs

Economist Andrea Giuricin of the University of Milano-Bicocca warns that airfares could increase by 10% to 15% over the next 12 months due to rising fuel costs.

Jet fuel, which accounts for approximately 35% to 40% of total airline operating costs, has seen significant price volatility. While airlines have previously mitigated these costs through hedging contracts, many of these agreements are reaching expiration. As operators are forced to purchase new supplies at higher market rates, the financial pressure is expected to rise.

Giuricin notes that while some companies might attempt higher price hikes of up to 20%, market competition will likely keep the actual increase within the 10-15% range. The impact may also extend to maritime transport, whereas high-speed rail remains less exposed to these specific energy fluctuations.