High fuel prices burning airlines’ profits

The aviation industry is in for a tough time this year as fuel prices continue to soar, says Qantas.

The Australian carrier says business conditions will worsen, while the global aviation sector is not expecting profitability until next year – underlining turbulence ahead for Air New Zealand, which is yet to make a decision on cutting engineering jobs.

Jet fuel prices in the new year have continued an upward climb that began in early December. They are now nearly 70 per cent higher than at the same time last year.

Last year, the price of Singapore jet fuel rose from US$45 ($64.8) a barrel to nearly US$85 at its peak, before falling back to around US$77.

New Zealand Herald