There is the troubling signs that the fear of rising oil prices will continue to push airline costs up over 2012. Recently in the the USA, the spot price for Gulf Coast jet fuel was 12.1% higher than a year ago and up 8.5% so far in 2012, according to the U.S. Energy Information Administration. If this trend continues, it could mean more fare hikes ahead.
Analysts and fare trackers suggest that JetBlue Airways and Southwest Airlines are leading a round of price increases that will boost the base fare onsome of their medium and longer flights by $10 per round trip, similarly, United, Delta, American and US Airways indicated that they had matched the increases.
It seems logical that in uncertain times, airlines will try to recoup fuel increases. With the rising oil prices, even airlines in the Middle East are finding it hard to maintain all their routes and Bahrain’s national carrier Gulf Air said it was closing services to four destinations – Damascus, Athens, Milan and Kuala Lumpur in the next few weeks. The closures are in response to the economic challenges due to a combination of factors such as the regional political situation, the high price of fuel and low passenger numbers.