Rising jet fuel costs push air fares higher, IATA warns

International

Middle East traffic slump weighs on global growth despite steady demand

Surging jet fuel prices are increasingly being passed on to passengers, according to the International Air Transport Association. The industry body points to mounting cost pressures and regional disruptions that are testing the resilience of airlines worldwide.

Despite ongoing instability in the Middle East, global demand for air travel continued to grow in March. However, developments in the region had a noticeable impact on overall performance. International traffic in the Middle East fell by around 61 percent, significantly dampening global growth, which reached just 2.1 percent during the period.

Fuel costs reshape pricing dynamics

IATA Director General Willie Walsh warned that persistently high fuel prices are beginning to influence ticket pricing more directly. “The extraordinarily high cost of jet fuel is increasingly being reflected in ticket prices,” he said, highlighting the growing financial pressure on carriers.

At the same time, Walsh cautioned that supply risks remain a concern. Regions heavily dependent on fuel deliveries from the Gulf, particularly parts of Asia and Europe, could face shortages in the coming months.

Uneven recovery across regions

While the Middle East recorded a sharp decline in international traffic, demand in other parts of the world showed stronger momentum. Outside the region, air travel demand increased by around 8 percent, underscoring a continued appetite for travel despite geopolitical uncertainties.

Busy summer expected despite challenges

Looking ahead, IATA expects the summer season to remain a traditionally strong period for travel. “That’s positive news, but airline resilience is being tested and stabilizing the supply and price of fuel is crucial,” Walsh noted.

The outlook suggests that while passenger demand remains robust, the industry’s ability to manage rising costs and supply risks will play a decisive role in the months ahead.