{"id":1219,"date":"2026-06-06T18:36:33","date_gmt":"2026-06-06T18:36:33","guid":{"rendered":"https:\/\/reliablemovingcrews.com\/?p=1219"},"modified":"2026-06-06T18:36:33","modified_gmt":"2026-06-06T18:36:33","slug":"airline-chiefs-grapple-with-fuel-shock-fare-test-at-rio-summit","status":"publish","type":"post","link":"https:\/\/reliablemovingcrews.com\/?p=1219","title":{"rendered":"Airline chiefs grapple with fuel shock, fare test at Rio summit"},"content":{"rendered":"<div><div><div><ul><li>Summary<\/li><li>Companies<\/li><\/ul><\/div><div><\/div><\/div><div>RIO DE JANEIRO, June 6 (Reuters) &#8211; Global airline chiefs open their annual summit in Rio \u200bde Janeiro on Saturday facing a sharper test of the industry&#8217;s post-pandemic recovery, as the Iran war drives up fuel \u200ccosts and disrupts airspace while carriers try to cushion the blow with higher fares and tighter capacity.<\/div><div>The June 6-8 annual meeting of the International Air Transport Association (IATA) comes as that fuel shock collides with another problem airlines cannot quickly fix: a shortage of new aircraft.<\/div><div>Boeing (BA.N)<svg><\/svg><span>, opens new tab<\/span> and Airbus (AIR.PA)<svg><\/svg><span>, opens new tab<\/span> delivery delays have forced many carriers to \u200bkeep older, less fuel-efficient jets in service for longer, raising maintenance and fuel bills just as oil prices have climbed.<\/div><div>IATA, which \u200brepresents more than 370 airlines accounting for about 85% of global air traffic, had forecast a record $41 billion \u2060in net profit this year for the industry before the war. Industry executives and analysts expect that outlook to be lowered at the \u200bmeeting.<\/div><div>A Deloitte survey of 21 global airline CEOs published this week found that fuel price volatility and inflation sit at the top of \u200bthe industry&#8217;s risk agenda, pushing carriers to focus more heavily on cost control and financial health.<\/div><div>&#8220;Together, they&#8217;ve turned what was supposed to be a record year into a fight for margin,&#8221; the survey said.<\/div><div>Brazilian airline Azul (AZUL3.SA)<svg><\/svg><span>, opens new tab<\/span> is planning to trim more flights to meet demand due to higher jet fuel prices, CEO John Rodgerson said.<\/div><div>\u200bNikhil Ravishankar, CEO of Air New Zealand, said airlines can only raise ticket prices so much to offset higher fuel costs.<\/div><div>&#8220;The market will \u200brespond and demand will soften and then you fly less,&#8221; he said in an interview.<\/div><div>Airlines have two primary costs: fuel and labor. Sudden increases in fuel \u200care hard \u2060to absorb because many tickets are sold weeks or months before travel. Longer routes also burn more fuel and make aircraft and crews less efficient.<\/div><div>The challenge is how much of the latest fuel hit can be passed on to travelers before higher fares start to weaken demand.<\/div><h2>FARE POWER<\/h2><div>So far, travel demand has held up in several large markets, especially among premium and corporate travelers, giving carriers more room to raise fares.<\/div><div>In \u200bthe United States, domestic published fares \u200bas of May 25 showed \u2060robust demand and successful pass-through of higher fuel costs, with one-week-out fares up 35.8% year-on-year and four-week-out fares up 39.4%, according to Raymond James.<\/div><div>&#8220;The willingness to pay over the past few years, crisis and no \u200bcrisis, from the premium side has been really strong, and we see that strength continuing,&#8221; Alexandre Lefevre, \u200bAir Canada&#8217;s (AC.TO)<svg><\/svg><span>, opens new tab<\/span> vice president \u2060of network planning and global sales, told Reuters.<\/div><div>Still, there are limits. Higher fares can help airlines recover part of their fuel bill, but they also risk pushing out travelers with tighter budgets. That risk is greater in regions where currencies are weak, consumer spending is under pressure or airlines \u2060lack the \u200bpricing power of large network carriers.<\/div><div>Some carriers are still planning for growth. Singapore Airlines (SIAL.SI)<svg><\/svg><span>, opens new tab<\/span> is \u200bin talks for at least 50 large wide-body jets, while Qantas (QAN.AX)<svg><\/svg><span>, opens new tab<\/span> is weighing an order for about 20 Airbus or Boeing wide-body aircraft, Reuters reported this week.<\/div><div><address><div><div><noscript>\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"120\" height=\"120\" alt=\"Rajesh Kumar Singh\" class=\"wp-image-1218\" src=\"https:\/\/reliablemovingcrews.com\/wp-content\/uploads\/2026\/06\/177cb8ebfb676746bdced873598b10ca.avif\"\/><\/figure>\n<\/noscript><\/div><div>Rajesh Kumar Singh<\/div><\/div><div><ul><li><span><div><svg><title>Email<\/title><\/svg><\/div><\/span><\/li><li><span><div><svg><title>X<\/title><\/svg><\/div><\/span><\/li><li><span><div><svg><title>Linkedin<\/title><\/svg><\/div><\/span><\/li><\/ul><\/div><\/address><\/div><\/div><p>Read more <a href=\"https:\/\/reliablemovingcrews.com\/?p=1216\">Mapping the Market: Euro could be approaching pivotal point<\/a><\/p><p>Read more <a href=\"https:\/\/reliablemovingcrews.com\/?p=1214\">Bitcoin\u2019s star fades, as investors flock to lustre of AI and megacap IPOs<\/a><\/p><p>Read more <a href=\"https:\/\/reliablemovingcrews.com\/?p=1212\">US get World Cup prayer as Pope Leo roots for the home team<\/a><\/p>","protected":false},"excerpt":{"rendered":"<p>Global airline chiefs in Rio de Janeiro for their annual summit are dealing with higher fuel costs because of the Iran war by raising fares and tightening capacity.<\/p>\n","protected":false},"author":1,"featured_media":1217,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[21],"class_list":["post-1219","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","tag-energy"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.6 - 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