Rising aviation fuel prices are pushing up airfares and could make air travel unaffordable for many consumers. Aviation expert Iase Zautashvili told BMG that fuel accounts for around 30–35% of an airline ticket’s cost, meaning higher global oil prices directly increase passenger and cargo transportation costs.
Zautashvili said the Strait of Hormuz crisis is not directly affecting Georgia, as aviation fuel is mainly imported from Russia, Turkmenistan and Romania. However, global oil price increases are still putting pressure on the local market.
“I don’t think airfares will become cheaper; they are more likely to rise. Except for occasional promotions, €300–350 tickets to European destinations may disappear. Air travel has already become a luxury and will remain so for a long time,” he said.
The expert expects the October low season to temporarily ease demand and prices, but believes high fares will persist longer term. He also cited limited competition on some routes and called for monitoring of fuel import prices and airline margins. Global jet fuel prices rose 9% last week to $171 per barrel, with experts expecting a potential increase to $209.
