Emily Crane
The CEO of United Airlines has warned flight
prices are about to spike as the busy holiday travel season looms — and surging
jet fuel prices are to blame.
Jet fuel prices are climbing to levels not seen
before COVID-19 hit and those costs would likely have to be passed along to
passengers, United’s Scott Kirby told CNBC on Wednesday.
Photo: Brian Snyder/Reuters |
Kirby, who wouldn’t predict how much fares
would increase, said higher demand for travel usually drives up jet fuel
prices.
United is predicting fuel costs will rise to an
average of $2.39 a gallon as the holiday travel season nears.
Jet fuel prices were at $2.32 a gallon this
week, which is up more than 115 percent from a year ago, S&P Global Platts
data shows.
The increases come as travel begins to increase
again in the wake of last year’s COVID restrictions being lifted and increased
vaccinations.
The number of people to pass through
Transportation Security Administration checkpoints in the US on Wednesday was
up nearly 60 percent compared to last year.
Other airlines, including Delta and American, have not publicly said whether their ticket prices are expected to increase.
It comes after the Centers for Disease Control
and Prevention released new travel guidance
ahead of the holidays,
urging all unvaccinated Americans to stay home.
“CDC still recommends delaying travel until
you are fully vaccinated,” said the agency, which is encouraging the
wearing of masks in transit.
The guidance came as experts warned it could potentially
be a chaotic holiday
travel season. Photo
About 40 percent of Transportation Security
Administration workers were unvaccinated ahead of the federal Nov. 22
deadline, potentially leading to staffing shortages on Thanksgiving.
Emily Crane, New York Post, October 21, 2021 9:18am
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