“The question is, will that increase in airfares be enough to cover the dramatically higher oil bills? I don’t think it will be.”
Fuel-hedging positions have protected airlines from the worst of the oil price rises since the start of the Iran war, but they have begun to unwind.
As a result, airlines will be forced to buy a far bigger proportion of their jet fuel at market rates.
Prices have surged by 113 per cent to $192 (£144) a barrel since the start of 2026, more than double the increase in the cost of crude oil.
