Booking a plane ticket now may be a good idea if you plan on flying in the near future. As the oil price continues to soar, so does the cost of jet fuel.
Despite their best efforts, airlines can’t seem to get a break. There is good news for airlines, as demand is returning, and they will have passengers. However, the bad news is that their costs have just skyrocketed.
The cost of jet fuel is among the airline industry’s top three expenditures. Airlines often lock in their fuel prices for a few months through what’s known as fuel hedging, but once this locked period is up, their fuel costs will rise.
Currently, if somebody plans to book a flight on any airline, there is likely to be no apparent increase in fuel price.
You should book sooner rather than later if you know your travel dates because of the unknown.
If you’re thinking of taking a trip abroad in the near future, you should book and buy your ticket as soon as possible. This also goes for domestic flights because demand will be high, and oil prices will rise. As a result, the lowest fares may not be as affordable as now.
If you’re thinking of taking a trip abroad in the near future, you should book and buy your ticket as soon as possible. This goes for domestic flights as well because demand will be high, and oil prices will rise. As a result, the lowest fares may not be as affordable as now. The game taking place amongst airlines right now is to see who will raise their fares first. Once one major airline starts, it will be followed immediately by the other.
In the current market, the price of crude oil is steadied at just above $100 per barrel, but volatility remains strong, following a 14-year high near $140 per barrel earlier this week.
Therefore, the easiest way for travellers to control future airfare prices is to book their flights in advance and lock in current fares.
Written by: Joe Cusmano
Source: Stray Nomad
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