IATA: More expensive fuel will increase airline costs by up to 100 billion dollars

IATA predicts a significant rise in airline fuel costs, estimating an increase from $252 billion in 2025 to $350 billion in 2026. This surge is attributed to high Brent crude oil prices, expected to average $95 per barrel. Consequently, airlines may raise ticket prices by up to 20% by 2027. The financial strain from fuel costs, projected to exceed 30% of airline expenses, could halve industry profits to $23 billion in 2026. Airlines are urged to enhance operational efficiency and consider sustainable aviation fuels to mitigate reliance on fossil fuels. Major carriers like LOT and Ryanair are adjusting flight schedules and reducing capacity in response to these challenges, with LOT suspending several routes due to high fuel prices.