Airline ticket prices rose 14% in recent days in Colombia, following the Middle East crisis
Tension in the Middle East is already being felt in airline accounts. The International Air Transport Association (IATA) warned that the conflict in the region and the closure of the Strait of Hormuz have made jet fuel more expensive and volatile, one of the most sensitive items in the business.
TL;DR
- The Middle East conflict and volatile jet fuel prices are increasing airline operating costs.
- Jet fuel accounts for 29.1% of operating costs for airlines in Latin America and the Caribbean.
- Prices have increased up to 200% in some markets, with unpredictable changes complicating financial planning.
- This has led to an approximate 14% increase in domestic ticket prices in Colombia.
- Long-haul routes are more severely affected, with some airlines applying fuel surcharges.
- IATA Colombia is urging the government to reduce VAT on tickets and fuel to 5% to alleviate the burden.