KUALA LUMPUR: Persistently high jet fuel prices could become the new normal for airlines, putting pressure on operating margins and limiting carriers’ ability to pass on higher costs to passengers, according to the Association of Asia Pacific Airlines (AAPA).
Speaking at AAPA’s 70th Assembly of Presidents here today, AAPA director-general Wong Hong said fuel accounted for about 33% of airline operating costs, making elevated prices a significant challenge for carriers.
“I believe so. I would certainly hope it is not, but it looks like these high prices will continue to prevail,” he said when asked whether high fuel prices would become the new normal.
Wong said airlines faced a dilemma between absorbing higher costs and raising fares, which could weaken passenger demand.
