Airline flights, ticket rush before price increases. Maxi losses for companies
It is estimated that the impact of fuel prices could lead to increases of up to almost 10%
The airlines worldwide are experiencing record ticket sales, due to the fact that many passengers are booking flights well in advance in fear of possible price increases. A prospect that is almost taken for granted: the war in the Middle East threatens to disrupt the entire global air transport system with painful losses that could primarily affect passengers. In the immediate future, it is estimated that ticket prices could rise by up to almost 10 per cent.
Ft: $53 billion losses for airlines
The Financial Times estimates that since the beginning of the war in Iran, the world's 20 largest publicly traded airlines have lost the staggering figure of around USD 53 billion in value. According to the London-based newspaper, the airline industry is experiencing its worst crisis since the Covid-19 pandemic, with the war causing similar disruptions, cancelled flights, and blocked hub airports. Compared to the pandemic, however, the scenario is aggravated by the rising cost of jet fuel, the aircraft propellant, which has doubled since the beginning of the war.
The scenario
The first companies to pay the price are the low-cost airlines: Wizz Air, which before the conflict was engaged in an expansion project, was hit days ago by an 'aggressive' wave of short-selling after announcing that the Iran war would practically wipe out its profits this year. American giants the Delta, the United, and American Airlines are testing scenarios in which the price of oil breaks through the$170 per barrel threshold, with the jet skyrocketing on the back of concerns about possible fuel shortages. And, experts point out, fuel is generally the second largest item in companies' balance sheet liabilities, after labour.
The position of the companies
United's CEO, Scott Kirby, clarified that the airline 'has set itself the goal of fully offsetting the increase in fuel prices'. But that an 8.5 per cent increase per seat on board would be needed to reach the target. And given that 'the first 10 weeks of 2026 were the busiest in the airline's history in terms of bookings', the strong demand suggests that Delta might be able to raise prices 'without losing too many customers'.
However, the position of many European airlines is currently divided: the CEO of Ryanair Michael O'Leary played down the possibility of immediate changes, believing that they would only be necessary if the price increase were to last until the summer, "for six months". Same position for Air France-Klm, Lufthansa, EasyJet. According to some analyses, European companies could somehow 'benefit' from the closure of Middle Eastern hubs, with traffic from Asia necessarily redirected to airports on the Old Continent.
