(Finance) – As if Covid wasn’t enough, the airlines are now struggling with expensive fuel beyond any worst expectation. This was revealed by the report drawn up by the Alix Partners company, which estimates the weight of the increase in jet fuel prices at the end of the year at 40 billion dollars, triggered above all by the war in Ukraine.
Up to May 27, the increase per metric ton was $ 1277.83. In the month of May the price of aviation fuel has exceeded the record values of 2008an increase of 121.75% compared to May 2021.
Alix Partners estimates that the weight of the rise will be transferred to the tariffs for at least 60% of the value of the increase. However, it appears that in the course of 2021, half of the airlines around the world have taken steps to ensure adequate supplies of fuel and therefore would be able to withstand the race to the upside in progress.