Surging fuel costs hit the aviation industry as multiple airlines raise fees and cut routes

Golden Ten Data reported on April 19 that several airlines are responding to rising costs by increasing baggage fees and reducing routes, as tensions in the Strait of Hormuz have driven up jet fuel prices. Chris Sununu, CEO of the U.S. aviation industry organization "Airlines for America," stated that fuel costs account for about 25% to 30% of airlines' operating expenses. The current increase in global oil prices continues to squeeze industry profit margins, and annual sector losses are expected to reach at least $25 billion. Sununu noted that U.S. airlines are under relatively less pressure compared to European carriers, but are still closely monitoring the evolving situation. Multiple airlines are offsetting costs by raising ancillary charges to avoid significant increases in ticket prices. In addition, since passengers typically purchase tickets several months in advance, the impact of rising fuel prices on end-user ticket prices is delayed and expected to gradually be passed on to consumers in the coming months.