SOME airlines could see their postpandemic recovery badly affected by the ongoing increase in oil prices.

Prices yesterday hit $130 per barrel - the highest since 2008 - and are expected to directly impact ticket fares.

"Fuel accounts for between 35 and 40 per cent of an airline's operating costs, it is inevitable that the increased costs will eventually trickle down to passengers," aviation analyst Alex Macheras told City A.M.

Airlines who hedged out about 80 per cent of their fuel needs - such as Ryanair - will be able to maintain low fares this summer, but prices will eventually be pushed up, he added.

Wizz Air has currently capped fuel exposure with zero hedges, while Easyjet has hedged out 60 per cent.

(c) 2022 City A.M., source Newspaper