Airlines say no changes in ticket prices for now despite fuel costs rising more than 50%
BY SKYLER OBISPO
Journal Staff
United Airlines’ Managing Director for Airport Operations for the Asia-Pacific Region Samuel V. Shinohara told reporters the airline does not have any plans to alter airfare prices despite the global rise in aircraft fuel.
United’s Vice President of Flight Operations Marc Champion said jet fuel prices have increased by more than 50% in a four-week period.
The International Air Transport Association reported that the average cost of fuel, as of the week ending in March 13, sits at $175 per barrel.
United Airlines does not plan to alter ticket prices as cost of aircraft fuel continues to rise. Photo by Skyler Obispo
Champion said if prices continue at this rate, that could mean more than $4 billion in fuel costs to the airline.
Shinohara said the rising cost of fuel is something the airline is giving careful consideration to, but said United does not want to overreact to the volatile oil market.
But as the Iran war continues, there may be a time where the airline will reach a breaking point.
“I think it’s a matter of time where it gets to a point where we can’t bear the burden,” Shinohara said. “But for right now, we haven’t made any changes.”
Smaller airlines are also paying close attention to the volatile fuel market.
Star Marianas Air, one of the region’s commuter airlines, told the Journal that navigating port logistics, shipping costs, and unpredictable sea conditions are a significant part of its daily operations, and so it keeps enough fuel in Saipan and Rota to last several months.
Robert F. Christian, the airline’s chairman, said because of the fuel reserves, Star Marianas is prepared to absorb the pressures of rising energy costs as long as possible.
“Our goal is to avoid any changes to ticket prices over the coming months, providing much-needed stability for our passengers in the Marianas,” he said.
The airline said it uses a specialized grade of fuel for its fleet of eight Piper PA-32-300 Cherokee Six aircraft and five Piper PA-31-350 Navajo Chieftains.
Christian said the fuel is not available through local vendors like Mobil. Instead, the airline coordinates the shipment of 6,500-gallon International Organization of Standardization tank containers from the U.S. through refineries in Korea. mbj
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