With global oil prices increasing, UAE airlines have indicated they would not raise their fares – but they haven’t ruled it out that possibility for the future. Since February 24, oil prices have surged by more than 30%, peaking at $139 per barrel. With predictions that oil prices might increase above $200 this year, airlines are aware that they may need to pass those costs on to their customers.
“Fares have been surprisingly muted and it looks like airlines have so far not taken any action in response to the oil price rise,” Suraj Ramesh from Al Badie Travel Agency told Gulf News.
“The oil price rise came at a really bad time for the aviation industry,” said Kamil Al Awadhi, IATA’s Regional Vice-President during the Arab Aviation Summit last week. “We are also worried about airports increasing charges – a lot of the handling agents are also hiking charges.”
So far, the most significant price increases have been for European flights, with some tickets increasing by AED 250. However, rising gasoline costs come at a bad moment for the airlines that withstood the pandemic.
