SINGAPORE: Jet fuel prices will still take months to normalise, Asian airline bosses say, even after Iran agreed to open the Strait of Hormuz as part of a two-week ceasefire deal with US President Donald Trump.
While crude oil prices fell as much as 16% to below US$100 a barrel yesterday after Trump announced the ceasefire, the chief executive officers of Malaysia Aviation Group (MAG) and Thai Airways International Pcl said the impact on prices and supply concerns will remain.
“Even if the war stops, it’s going to take many, many more months for the price to stabilise,” MAG’s Nasaruddin A Bakar said at an International Air Transport Association event in Singapore.
Carriers globally are grappling with a more than doubling of jet fuel costs since the war broke out, and the threat of supply shortages in some regions has forced some airlines to reduce services.
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