By using this site, you agree to the Privacy Policy and Terms of Use.
Accept
Travel Radar - Aviation NewsTravel Radar - Aviation News
  • Breaking News
  • Aviation
    • Aircraft
    • Airlines
    • Airshow & Events
    • Careers
    • Manufacturing
  • Travel
    • Airports
    • Points & Loyalty
    • Technology
    • Trip Reviews
  • Newsletters
Reading: What Do Russian Oil Bans Mean for Airfares?
Share
Sign In
Notification Show More
Font ResizerAa
Font ResizerAa
Travel Radar - Aviation NewsTravel Radar - Aviation News
  • Breaking News
  • Aviation
    • Aircraft
    • Airlines
    • Airshow & Events
    • Careers
    • Manufacturing
  • Travel
    • Airports
    • Points & Loyalty
    • Technology
    • Trip Reviews
  • Newsletters
Have an existing account? Sign In
Follow US
Copyright © Travel Radar Media Ltd. 2024 | All Rights Reserved
Travel Radar - Aviation News > News > What Do Russian Oil Bans Mean for Airfares?

What Do Russian Oil Bans Mean for Airfares?

Fraser Watt
Last updated: 12 March 2022 09:51
By Fraser Watt 3 Min Read
Share
will airfares increase due to russian ban
© Nicole Geri
SHARE

Passengers are being urged to prepare for steep airfare hikes, as bans on Russian oil may cause the price of jet fuel to skyrocket.

Alan Joyce, Qantas’ CEO, predicts prices could rise by 7% as crude oil prices soar following Russia’s invasion of neighbouring Ukraine. Others warn increases could be higher still.

oil distillery in moscow russia
Russia is one of the largest exporters of oil in the world | © Alexander Popov

The fluctuation in oil prices comes amid the US, UK and Australia all banning oil imports from Russia, one of the largest oil exporters globally.

If the EU introduces similarly tough embargoes on Russian oil, prices will almost certainly rise further – “This would be catastrophic for airlines.” says Rico Merkert, a Professor at the University of Sydney studying transport supply chains.

Will increasing capacity level out prices?

Jet fuel typically makes up 30% – 40% of operating costs for airlines. Professor Merkert went on to say that “you don’t have to be a maths expert” to see that a price increase of even 20% will have a significant impact.

Ravi Kumar, head of Continental Travels Australia, urges travellers to buy early to avoid the worst of any increases yet to come – “We don’t know if it will be a minor increase or grow to a major increase, but we can expect some jump.”

However, some onlookers are less concerned about the impact of price rises as they anticipate increasing capacity to counter the effects.

“Most airlines are currently operating at 10% to 25% of their capacity”, according to Tom Manwaring, chair of the Australian Federation of Travel Agents.

In the coming months, Mr Manwaring predicts international carriers will allow more seats to become available, driving down the cost to travellers – “Competition between airlines as that happens will help level prices back out.”

Impact larger on smaller carriers

Larger airlines may be better protected from any rises, says Professor Merkert. For example, according to Mr Joyce, Qantas has hedged 90% of its fuel needs for the next three months, which will give the airline time to “react” to any future increases.

Professor Merkert said smaller or newer airlines that compete on cost were less likely to secure a hedging contract, so fuel price hikes have the potential to have a much bigger impact.

Will increased capacity be enough to level out fuel cost increases? Let us know your thoughts in the comments below.

You Might Also Like

Top Educational Travel Destinations: Learn and Explore the World

Air Traffic from Above: How Satellite Data Enhances Global Flight Tracking

IATA Launches SAF Matchmaker Platform

SAS Launches New Copenhagen to Mumbai Route

Air India AI171 crash: Data from Black Boxes Under Examination, say Indian Officials

Share This Article
Facebook Twitter Email Copy Link
What’s your thoughts?
Love0
Sad0
Happy0
Angry0
Fraser Watt
By Fraser Watt
Jr Journalist - A little about me coming soon!
Previous Article Schiphol Reacts to Energy Crisis by Turning Down Heat
Next Article Air Astana airborne Air Astana suspends all flights to Russia due to insurance issues
Leave a comment
Subscribe
Login
Notify of
guest
guest
0 Comments
Oldest
Newest Upvoted
Inline Feedbacks
View all comments

Stay Connected

FacebookLike
TwitterFollow
InstagramFollow
YoutubeSubscribe

Trending News

Modern lounge interior featuring ITA Airways aeroplane design.
Lufthansa Group’s travellers can access ITA Airways lounges from July 2025
Airlines Aviation Did You Know Travel
EVA Air Boeing 787-9 aircraft.
Summer Delights: EVA Air Brings Fine Dining to the Air
Airlines Aviation Travel
American AIrlines Airbus A321 flight diverted to Las Vegas due to mechanical issue. Picture shows American AIrlines flight on the tarmac
American Airlines Flight Forced to Return to Las Vegas Airport Due to Mechanical Issue
Aircraft Airlines Airports Incidents & Accidents
airBaltic Airbus A220-300 aircraft.
airBaltic Expands Codeshare Agreement with Turkish Airlines
Airlines Aviation Route Development
Entrance to London Luton Airport
UK Civil Aviation Authority Releases 2024/2025 Airport Accessibility Assistance Report
Airports Aviation
//

Travel Radar is the leading digital hub for all things aviation and air-travel. Discover our latest aviation news, aviation data, insight and analysis.

Discover

  • About Us
  • Contact Us
  • Careers
  • Press & PR
  • Privacy & Legal

Our Content

  • News
  • Data
  • Images
  • Jobs
  • Subscribe

Sign Up for Our Newsletter

Subscribe to our newsletter to get our newest articles instantly!

Click here to Signup!

© Travel Radar Media Ltd. 2015-2025 | ISSN #2635-0696 | Trademark #UK00003579704
wpDiscuz
adbanner
AdBlock Detected
Ads help us bring you high-quality, independent journalism for free. Support us by whitelisting us from your ad blocker.
Okay, I'll Whitelist
Welcome to the TR Community!

Sign in to your account

Register Lost your password?