Aviation Group Warns High Airfares Could Impact Summer Travel Season

High airfares driven by rising fuel costs and geopolitical tensions are threatening to disrupt summer travel plans and force airlines to scale back flights, according to the Airports Council International (ACI), the global trade body representing airports. The warning comes amid continued instability in energy markets and constrained aviation demand recovery across several regions.

ACI Director General for Asia Pacific and the Middle East, Stefano Baronci, said that elevated ticket prices are becoming a major concern for airports, as they directly impact passenger demand. He noted that higher prices, rather than fuel supply shortages, are now the primary risk factor for the aviation sector, with airlines increasingly forced to adjust capacity in response to weaker demand.

The aviation industry has been under pressure due to rising jet fuel costs, which briefly surged to over $200 per barrel in April before easing to around $150. These fluctuations have significantly increased operating expenses for airlines, prompting fare hikes and the cancellation of less profitable routes, particularly ahead of the peak summer travel season.

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According to ACI estimates, ongoing geopolitical tensions have already resulted in substantial losses for Middle East airports, with approximately $1 billion in lost revenue recorded in March and April alone. The disruptions have also led to a sharp 52% decline in air freight volumes, reflecting broader strain on global supply chains and cargo movement.

Despite these challenges, ACI data suggests that most airports in Asia and the Middle East currently maintain a buffer of 10 to 20 days of jet fuel supply. However, around 60% of surveyed airport operators have reported emerging concerns about tightening fuel sourcing conditions, even though there is no immediate crisis in availability.

The broader aviation recovery also remains uneven. Recent data indicates that global air traffic has operated at just over half of normal capacity in recent weeks, highlighting a still-fragile rebound in international travel. While Baronci expressed cautious optimism about the industry’s outlook, he emphasized that sustained recovery will depend heavily on the resolution of ongoing geopolitical conflicts and stabilisation of fuel markets.

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