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Iberia and Vueling Promise No Summer Cuts or Surcharges as Fuel Costs Surge

Extensive fuel hedges let the carriers resist the jet-fuel shock.

Overview

  • Iberia and Vueling, which outlined their stance Wednesday, said they will keep summer schedules and will not add fees to tickets already bought.
  • Parent group IAG has large fuel hedges, reported at roughly 75% to 80% of needs, which it says help the Spanish airlines avoid cuts.
  • Jet fuel prices spiked after late-February fighting in the Middle East, with market trackers reporting near-doubling year over year by April.
  • U.S. figures show airlines’ March fuel bill jumped 56.4% to $5.06 billion, and carriers raised fares, increased bag fees, trimmed routes, and Spirit shut down.
  • Elsewhere, strategies differ, with Lufthansa planning about 20,000 summer cancellations and Aerolíneas Argentinas adding temporary fuel surcharges, and experts say airfares climb quickly with fuel and drift down slowly.