Europeans are driving less and the airline industry is facing a $100 billion fuel hit as the Iran war’s energy impacts expand.
Eurozone petrol sales fell 3.5% year-on-year in April, the first drop in almost two years; the UK saw even greater declines. Airlines, meanwhile, warned that margins and profits will halve this year, with the sector especially vulnerable because aircraft makers are behind on deliveries, meaning firms are relying on older, more fuel-hungry planes.
British Airways said that air fares will likely rise again if fuel prices stay high, while an industry body noted that global profits per passenger were down to $4.50 and said that some airlines will likely follow the budget carrier Spirit Airlines out of business.
