IATA: U.S. Carriers Fuel Cost Doubles, Demand Dips, on War


   
Barani Krishnan
DTN Refined Fuels Market Reporter

   SECAUCUS, NJ (DTN) -- U.S. and North American air travel demand softened 
slightly in April as the ongoing Middle East conflict disrupted global flight 
networks and doubled jet fuel costs, the International Air Transport 
Association (IATA) reported Thursday (5/28).

   North American carrier demand dipped 0.3% year-on-year, while domestic 
United States traffic fell 0.6% during the month.

   Global passenger demand dropped 3.4% in April compared to the same period 
last year, entirely dragged down by a 46.6% collapse in Middle East carrier 
traffic, IATA said.

   Excluding the conflict-afflicted region, international passenger demand 
actually grew, by 1.2% globally, as airlines navigated highly volatile 
operating conditions and rising ticket prices.

   The war in Iran forced carriers to cut forward schedules in order to balance 
weaker demand and surging fuel expenses, IATA Director General Willie Walsh 
said, noting this was putting significant upward pressure on airfares. "The 
cost of jet fuel more than doubled in April, which is pushing airfares up," 
Walsh added.

   Despite the pressure, international traffic for North American carriers 
remained flat, and Europe-to-Asia direct traffic surged 15.3% as carriers 
bypassed Middle Eastern airspace, IATA observed.

    




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