The alarm was sounded by its CEO International Air Transport Association (IATA), William Walsh, warning travelers that airfare could become more expensive – and the reason for this is the inability of the oil refining industry to improve, as well as the financial situation of airlines after the pandemic. Currently, the industry’s biggest concerns are a reduction in refining capacity and rising fuel costs driven by rising demand. Speaking to US broadcaster CNBC, Walsh even stressed that while travelers are being asked to pay more for a ticket, airlines are not making more profit. “Given the financial position of many airlines, they are not making higher profits, they are simply passing on costs that they cannot cover,” he said. US airfare prices have risen 25% over the past year, the biggest increase since 1989. According to the US Department of Labor, ticket prices rose by 18.6% in April alone.

US airfare prices have risen 25% over the past year.

Another factor that could push prices higher is Putin’s announcement yesterday of a partial mobilization, as announced by Qatar Airways CEO Akbar Al Baker. Speaking to CNBC, he stressed that China’s coronavirus extinction policy is not among his biggest concerns. On the contrary, he is very afraid of a blow to air carriers from the escalation of tension between Russia and Ukraine. “My main concern is the spread of the dispute, which will then fuel inflation by putting more pressure on supply chains. As a result, there will be fewer passengers on my plane,” he said. In addition, the head of Qatar Airways stressed that he was also concerned about the volatility of prices for “black gold”. “I don’t want to pass the cost on to passengers because then they won’t be willing to travel.” It is recalled that after Putin’s statement, oil prices jumped by at least 2%, as investors feared an escalation of the war and a reduction in oil and natural gas reserves. Al Baker emphasized that investments should be made in alternative fuels, while he noted that Qatar Airlines is “ready to invest in flights”, but on the condition that prices are reasonable. “I don’t have a problem with a small amount of fuel, but I can’t pay four to five times what I would pay for fluorinated fuel. If we are forced to do this, you, as passengers, will have to endure it.”

Walsh also expressed hope for more investment in sustainable fuel production instead of traditional refineries. It is noted that last year IATA set a goal to reduce the sector’s emissions to zero by 2050.