Travelers alarmed at sky-high airfares this Christmas can add soaring fuel prices spurred in part by Russia’s weaponization of its energy resources to the list of factors to blame.
The price of jet fuel — which typically accounts for around a quarter of an airline’s total operational costs — is on a tear. The jump this year is more than double the gains in crude oil, reflecting both the pent-up demand for air travel after the virus as well as dislocations in energy markets due to the war in Ukraine and the pandemic.
Russia’s strategy of curbing supplies of natural gas to Europe has sparked a full-blown power crisis and spurred a rush for alternatives such as diesel that can be used for heating, industry and electricity generation. That’s creating a shortage of jet fuel — which is made from the same type of oil as diesel — just as demand soars.
