Anyone planning a winter getaway should prepare now for sticker shock at the checkout. Travel industry experts warned consumers that jet fuel prices increased by 100% in the past year, and airlines will pass those costs onto travelers.
The COVID-19 pandemic already caused turmoil in the travel industry. Temporary federal travel restrictions required the beleaguered airlines to cut international and domestic flights, and the slow reopening process has extended the financial hit longer than business leaders hoped.
Jet fuel, as well as gasoline and diesel fuel, have soared in price this year. Compared to October 19, 2020, jet fuel prices increased by 118.7%.
The price of jet fuel ascended by 17.8% this month alone. While airlines may enact cost-cutting measures in other areas, they maintain no control over the price of jet fuel.
A spokesperson for Delta noted that jet fuel accounts for 20% of the company’s quarterly expenditures. Because the company can’t cut fuel costs, it must pass those increases along to ticket buyers.
The unfortunate timing of the fuel price increases will affect the upcoming holiday travel season. Many people have waited to take a vacation or visit at-risk relatives because of the pandemic.
Now, fuel prices may hinder their travel plans. Airlines fear that some people may take road trips instead of flying for the holidays.
If ticket prices go up too much, the airline industry may suffer more. One way some airlines hope to get around the fluctuation in jet fuel prices involves the development of sustainable fuel.
A recent flight powered by recycled cooking oil offers hope to an industry that environmentalists decry. Sustainable aviation fuel, or SAF, offers hope for reduced carbon emissions as well as stability in flight prices.
Fuel producers create SAF from biomass and waste resources. The Department of Energy oversees efforts to scale up production of SAF.