Jet fuel surge forces airline cuts before Labor Day
With China’s Labor Day holiday approaching, Southeast Asian low-cost carriers are canceling flights as jet fuel prices surge to nearly $198 per barrel globally and $217 in Asia. AirAsia X CEO Bo Lingam said prices have risen from $90 before the Middle East conflict to $200 today, prompting a 20% fuel surcharge hike and route cuts. Vietjet has cut international capacity by over 30% on some routes. Cathay Pacific will cancel about 2% of passenger flights from May 16 to June 30, while HK Express will cancel roughly 6%. China’s domestic cancellation rate has reached 14.6%. IATA warned fuel supply could take months to normalize.
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