Air travel prices likely to get worse in coming weeks, Chevron CEO says
Washington — The ongoing standoff between the United States and Iran over the Strait of Hormuz is causing ripple effects in global markets, with Chevron’s chief executive warning of potential consequences for travelers. Chevron CEO Mike Wirth predicts that airline fares could rise and flights could become scarcer in the coming weeks as fuel prices soar.
Speaking on “Face the Nation with Margaret Brennan,” Wirth highlighted the impact on aviation, stating, “We’ve seen some upward pressure on gasoline prices now. I think aviation is clearly an area where it’s going to probably get worse over the next few weeks.” He noted that jet fuel supplies are tightening rapidly in Europe and Asia, leading to airlines adjusting their flight schedules and increasing fares.
According to Wirth, the jet fuel shortage existed in certain regions even before the conflict with Iran escalated on Feb. 28. Airlines have already started making adjustments, such as cutting routes and raising bag check fees. While U.S.-based carriers have a slight advantage due to domestic jet fuel production, they are not immune to the market pressures.
“The upward pressure on prices and the tightness in the market is likely to result in further route optimization. Flights may become less frequent, and planes may operate at higher capacity,” Wirth explained. “As a consequence, travelers can expect to see higher fares in the near future.”
Jet fuel prices in North America have surged by over 80% compared to the previous year, according to the International Air Transport Association. Meanwhile, the average nationwide gas price stood at $4.03 per gallon on Thursday, nearly a dollar higher than a year ago. Diesel prices, crucial for transportation sectors, have risen even more rapidly, reaching $5.47 per gallon.
For more insights from Mike Wirth on the current situation and its impact on air travel, tune in to “Face the Nation with Margaret Brennan” this Sunday.
