THE two-week ceasefire between the US and Iran is "positive” the aviation industry, but jet fuel and ticket prices will remain elevated for some time, said Willie Walsh, the head of the airline industry’s global trade body.
"Even two weeks is a positive because we will see some flow of oil return,” Walsh, who will take over as chief executive officer of Indian budget carrier IndiGo later this year, said in an interview with Bloomberg Television.
However, jet fuel prices "will remain elevated for some time,” he said. "If crude has come down 16% you like to think jet will come down by a similar figure but it’s still going to be a high price, that will mean higher ticket prices. It is inevitable.”
Speaking in his role as director general of the International Air Transport Association, Walsh said the short-term risk of supply shortages still remains. Asia is most vulnerable, followed by Africa and Europe, he said.
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