Air fare rises ‘inevitable’ as airlines face extra $100bn jet fuel bill this year

Iata summit in Brazil hears top executives say although jet fuel shortages are unlikely, industry-wide profits will halve BA boss: ‘Costly aviation taxes and rail tickets stunting UK tourism growth’ Airlines will have to spend an extra $100bn on jet fuel this year, with fares “inevitably” rising to cover the bill after the war with Iran choked off oil supplies. With jet fuel prices expected to be 70% higher across 2026, airlines body Iata said that collective industry profits worldwide would halve to $23bn. Some carriers would struggle to survive the fuel price shock caused by the closure of the strait of Hormuz in March, it said. “High oil prices will inevitably mean higher ticket prices,” said Willie Walsh, Iata’s director general. “There’s just no way to avoid that.” Walsh said industry polling showed passengers were now braced for higher fares and prepared to spend more, but added: “The big unknown is how long travellers and shippers can tolerate the higher costs of connectivity.” Speaking at Iata’s summit in Rio de Janeiro, Walsh said it was a “challenging and unpredictable time”, with “wafer-thin margins”. “It’s going to be very challengi