US Airlines have begun to reduce the number of flights they provide to consumers, blaming the rising cost of gasoline, which has been compounded by Russia's invasion of Ukraine.
Alaska Air announced that in the first half of this year, it will lower its offers by up to 5% due to "sharp increases in fuel expenses." Allegiant Airlines will slash flights by between 5% and 10% in the second quarter, according to the company's chief financial officer.
Allegiant's chief financial officer stated that the firm intends to reduce its flight schedule largely during periods of lower demand. Bloomberg News reported on his remarks.
High gas costs at the pump, according to industry analysts, will compel customers to cancel vacation plans and make them less inclined to fly.
Airlines must decide whether to tolerate increased fuel prices to cut into their profits or pass the cost on to passengers, forcing them to pay more for their tickets.
On Tuesday, the ordinary American motorist was forced to pay a new high at the petrol pump as the Russian invasion of Ukraine continues to disrupt global energy exports and drive up gas prices.
According to AAA data, the national average price of a gallon of gasoline was $4.25 as of Wednesday morning. The most recent figures smash the previous high of $4.11 set in July 2008.
Analysts warn that prices may worsen in the coming days, particularly if geopolitical tensions between Russia and Western nations worsen.
In early morning trade on Wednesday, US crude was down more than 5%, selling for $116 a barrel. Brent crude sank 5.4 percent to $121.1 per barrel, the worldwide benchmark.
Higher energy prices are putting a strain on the tourism industry's recovery from the coronavirus epidemic, and it's not only Americans who are feeling the pinch.
According to aviation data firm OAG, global airline capacity fell 0.1 percent last week to 82 million seats, and is still 23 percent lower than the same week in pre-pandemic 2019.
North East Asia's total scheduled airline capacity fell 4.5 percent from the previous week, the most of any area, while international capacity to and from the region remained 88 percent lower than the same week last year.